Increase the Value of Your Property Through Home Improvements

Making improvements to your home can enhance how it looks, how it functions, and in some cases, how much it is worth. For many homeowners, home improvements are also a common reason for remortgaging or borrowing additional funds against their property.

This guide explains which types of improvements can make sense, how lenders view additional borrowing, and how to approach funding your plans responsibly.

Do Home Improvements Always Add Value?

Not all home improvements increase a property’s value in the same way. Some upgrades may improve saleability or lifestyle rather than significantly increasing price, while others may fail to add value at all if costs outweigh the benefit.

The key is understanding the difference between:

• Improvements that enhance long-term value
• Improvements that make a property easier to sell
• Improvements made primarily for personal enjoyment

A balanced approach helps ensure any borrowing remains sensible.

Home Improvements That Often Add Value

While results vary by location and property type, improvements that commonly appeal to buyers include:

• Improving energy efficiency, such as insulation or heating upgrades
• Replacing dated windows or doors
• Updating tired interiors with neutral finishes
• Improving layout and use of space
• Enhancing kerb appeal and outdoor areas

These changes can improve both desirability and functionality, which may support value over time.

Improvements That Require Careful Consideration

Some projects require more thought before proceeding, including:

• Major structural changes such as extensions or loft conversions
• Highly personalised renovations
• Over-improving compared to neighbouring properties

Lenders may also require consent before work begins, particularly for larger projects, and planning permission may be needed.

How Can You Fund Home Improvements?

Many homeowners fund improvements by borrowing against their property. Common options include:

Remortgaging

Replacing your existing mortgage with a new one that includes additional borrowing for improvements.

Further Advance

Borrowing extra funds from your current lender without changing your existing mortgage.

Other Borrowing Options

In some cases, unsecured borrowing may be considered, depending on the scale of the work and your circumstances.

Each option has different implications for rates, fees, and long-term affordability.

How Lenders View Borrowing for Home Improvements

Mortgage lenders typically assess:

• Your current property value and loan-to-value
• Your income and affordability
• The purpose of the additional borrowing
• Whether the work is likely to maintain or improve the property

As long as borrowing remains affordable and the property is well maintained, lenders are often comfortable with sensible improvement plans.

Planning Before You Borrow

Before proceeding, it’s important to:

• Budget realistically for the full cost of the work
• Consider whether the improvement adds value or enjoyment
• Check whether lender consent or planning permission is required
• Factor in long-term affordability

Professional advice can help you avoid borrowing more than necessary or choosing an unsuitable funding route.

Is Remortgaging for Home Improvements Right for You?

Remortgaging or borrowing more can be an effective way to fund improvements, but it isn’t right for everyone. The best approach depends on your goals, finances, and how long you plan to stay in the property.

Understanding your options before committing ensures improvements support your wider financial plans.

Next Steps

If you’re considering home improvements and want to explore funding options, speaking to a mortgage adviser can help you understand what’s available and what suits your circumstances.

Expert guidance can ensure your borrowing remains affordable while helping you make the most of your property investment.

The content on this page is provided for general information only and does not constitute personalised mortgage or financial advice. Mortgage eligibility, rates and criteria vary between lenders and are subject to change. You should seek tailored advice based on your individual circumstances before making any financial decisions.
Vincent Burch Ltd is authorised and regulated by the Financial Conduct Authority.