There are some circumstances when remortgaging after home improvements have been made is more beneficial than remortgaging beforehand. This can be the case if you’re not reliant on the funds made available through equity release to actually undertake the work in hand.

For example, if improvements will add to the property’s value extensively, you could be considered for a lower interest rate on your mortgage deal once the works are complete. This is because the property’s new value will have increased, giving you a better loan-to-value (LTV) for your mortgage.

As with any mortgage deal, you’ll be assessed on your affordability using specific criteria by your lender. This will usually involve a credit check, which assesses your spending habits, payment records and your total income.

If you have equity in your home, you’ve kept up your repayments over the years and can afford the new repayments, there should be no problem entering into a remortgage deal.

Remortgaging is a huge decision and one which should be carefully considered. That said, there are a huge number of benefits associated with remortgaging for home improvements. Some of these benefits include:

• Improvements and renovations will usually increase the property’s value.
• This route is often cheaper than moving to a bigger property.
• Associated moving fees are avoided.

Whilst remortgaging for home improvements sounds like a no-brainer - particularly if you’re looking for a little more space in your home but don’t want to move - there are some things to be aware of before entering into a new mortgage deal.

With extended borrowing comes a slightly higher risk, so taking the necessary steps to ensure that you can afford the new repayment fees and interest rate is a vital first step. Other things to consider before starting the journey include:

• With additional lending, the repayment period may stretch to a longer time.
• The mortgage process can take time before equity is actually released, so it’s important that you’re committed to the cause.
• When a property is used as collateral, it’s vital to remember that if repayments fees are missed, you may risk losing the property.
• Homeowners without much existing equity in their mortgage may find it less beneficial to remortgage their home, and should perhaps consider other funding routes..

If you’re unsure whether remortgaging your home would be the right choice for you, but you’re still keen to make the improvements necessary, you might want to think about your other options.

A safe and risk-free solution would be to dip into your savings in order to fund the renovations. If the improvements aren’t timebound, you can eliminate any risk associated with remortgaging by saving small amounts over time.

Additional Borrowing allows current mortgage holders to increase the amount on their Furness Building Society mortgage. This option can give you a much-needed cash injection, whether that’s for home improvements or other living expenses.

If Additional Borrowing sounds like a viable choice for you, get in touch with our dedicated team of experts today to get some sound advice. Speak to our Additional Borrowing team on 0800 220 568.