Financing renovations

[Isanyonereallyanonymous]

I have a really stupid question. How are home renovations usually financed?!
A property has come up which I really like, well under my current mortgage, nevermind the max mortgage I could get. (I wouldn't want to stretch myself that far but just demonstrating how cheap it is in mortgage affordability)
It's very dated and would need quite a lot of tlc, as well as some work to move/change the bathroom. It could all be done in time but it would take me forever to save to do it all.
How would it normally be financed to do works, especially big works like bathrooms, moving walls etc. Do people usually save, is it loans or can it be done as part of the mortgage?
Apologies if this is really naïve to ask!

If you are a first time buyer you will need to either use savings, take a personal loan for home improvements, or wait a few years to build equity in your property and then see if you can remortgage for a higher amount when your fixed term ends (risky as relies on you overpaying the mortgage or your property increasing in value). You can use 0% credit card for fixtures and fittings but not to pay for trades. Remortgaging can be expensive as although your mortgage interest rate is probably lower than a personal loan you could end up paying it off over the full length of your mortgage term rather than say 3 or 5 years for a personal loan so over the years the interest will add quite a lot. But it's likely to be more affordable monthly as the adjusted mortgage payment won't be as high as those for a loan.

If you already own a home you could arrange a mortgage with lower deposit (e.g. put down 10% instead of 20%) to keep back any equity you've built up in your current home as cash to pay for the renovation when you move.

We've done a combination of all of the above over the years in different properties!

That's really helpful, appreciate you taking the time to reply, thankyou. I own at the moment so have some equity but not enough to do it all, but possibly enough to get started, so food for thought!

We saved up each year and tackled each job at a time, boiler, then rewire, then living room. For the bathroom we did some additional borrowing on the mortgage and the kitchen we put down a chunky deposit and got it financed through the kitchen company because there's no way we could have saved enough for either of those jobs in the next few years.

I'd take it room by room and decide on what your first priority is. I wish we didn't have to take on debt for the kitchen and bathroom but they were worth it for us 😊