You may be able to remortgage for home improvements, borrow more on your mortgage or opt for alternative financing to create space or add value to your property.
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Home improvements
Additional mortgage borrowing for home improvements
Pros
May secure a lower interest rate – you could end up paying less for your monthly repayments.
Single monthly payment – instead of managing separate loans.
More disposable income – spreading the cost could mean more disposable income for holidays, etc.
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Cons
May incur additional fees – solicitors’ fees or early repayment charges may be payable.
Could extend the mortgage length – this may result in more repayments and interest over time.
The process could take longer – a remortgage may involve a valuation and the inclusion of a solicitor.
Secured lending – the additional borrowing will be secured against your property.
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Renovation research
Research the UK market for home improvements that do and do not add value to your home. Work out whether a garage conversion, new kitchen, roof, conservatory or pool would really add value. Plan carefully so your renovations don’t cost you more than they will add to the property.
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Increased borrowing
Borrowing extra on your mortgage typically means you’ll owe more money for longer. Consider what that might mean for you in future if your circumstances change. Additionally, take interest charges into account.
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Fees and charges
You may be subject to early repayment charges if you choose to remortgage before your current mortgage deal expires. Read the terms of your mortgage agreement and verify the conditions before you decide to remortgage.
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Looking for the best ways to add value to your home?
Whatever the reason for making home improvements, we could help you get started. See our ideas on how you could add value to your home and find out the most popular things people do to improve their homes. Plus, we’ll help you discover more about home renovation financing in the UK, whether you’re thinking you’d like to borrow more on your mortgage or take out a loan.
Update your kitchen
As the heart of the home, the kitchen is often the first place for home renovations.
A complete update can be expensive, so why not focus on some minor, cosmetic updates? Getting new cupboard doors or handles can make a big difference.
If you decide on a brand new kitchen, ensure your total spend is in line with the overall value of your home or you'll end up losing money.
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Add or renovate a bathroom
If you want to add a new bathroom or renovate an existing one, save money by:
Installing the new bathroom near existing water and sewerage pipes
Protecting your investment from mould and mildew by installing extractor fans
Going for classic trends if you want your investment to pay off well into the future.
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Turn your garage into an extra living space
Every house could do with some extra space.
An empty garage is the perfect way to free up space without bearing the cost of a house extension.
You can split your garage into two rooms, especially if it is long and thin.
Garage conversions may not require planning permission, which saves you money. You must still comply with building regulations.
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Remortgage for home improvements
Remortgaging could be a way to pay for your home improvements. A remortgage would involve getting a deal with a new lender for your mortgage and requesting additional money for the cost of your renovation.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Look at the options available to you if you're over 18 and thinking about borrowing extra on your mortgage for renovations.
What is a renovation mortgage?
A renovation or remodel mortgage is a type of additional borrowing used specifically for home improvements. It’s a home loan secured against the projected property value and may cover several types of renovation, including:
- Extensions
- Structural changes
- Other refurbishments
NatWest doesn't offer a renovation mortgage product. However, we've detailed our different home improvement financing options below.
Remortgage
This option involves taking out a different deal with a new lender on the property you own. When you start the remortgage process, you can consider increasing your mortgage to cover the cost of your home improvements.
Find out how much your monthly payments could be when you remortgage to NatWest
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Additional borrowing
If you're an existing NatWest customer and have a mortgage on the property, you may be able to take out additional mortgage borrowing.
Remember, this may extend your mortgage term. The debt will be secured against your home, and a set-up fee may apply.
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Savings
Using existing savings could help you avoid paying interest costs. However, it's a good idea to keep some savings to cover any unexpected expenses.
If you want to save up the cash to pay for the work on your property, you can set a savings goal linked to your savings account to help you get there.
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Loan
A loan calculator will show you the rate and monthly repayment cost for a NatWest home improvement loan.
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Credit cards and overdrafts
Credit cards and overdrafts could cover smaller amounts over the short term, but they may work out expensive if used for longer-term borrowing.
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