Renovation mortgage

[Mover2024]

Is there such a thing as this? Researching but it isn't clear!

If we were to borrow £200k under our borrowing capacity, could we get a mortgage that allowed us to borrow c. £100k for renovations? Or doesn't that exist and we would just need to get a loan?

Yes you can, it just means you've got less equity in the house as you've borrowed more.

Be aware that there might be conditions attached to the mortgage depending on the extent of the renovations and whether they're structural. You get asked in the application if house is in a good state of repair and if building work is planned. It's harder to get a mortgage on an uninhabitable house so be careful at what point you apply - if the house hasn't got a kitchen at that point it could well be classed as uninhabitable and then you suddenly can't get a mortgage. If it is structural and/or renovations over a certain value you'll probably need specialist house insurance.

We found it was relatively straightforward to borrow up to £30k as an unsecured home improvement loan. Above that level it was harder and meant remortgaging.

@RidingMyBike thank you! Think we will just retain some equity and get a home improvement loan. Can only see ones up to £15k though! Did you get yours from your existing lender?

Depends on value of house before the renovations are done and the maths needs to stack up. Speak to your broker

We got ours from BuildStore

Thanks all. Buildstore looks excellent, will research further into this

Sorry - was this a renovation mortgage or loan?

A renovation mortgage - classed as a self build mortgage though actually we were just renovating. We couldn’t get a normal mortgage as the house didn’t have a working kitchen or bathroom.

@JumpinJellyfish thanks - they do loans too so will have a look