Home Improvement
Home Improvement Mortgage FAQs
As everyone’s personal circumstances are different we would never make a recommendation about finance before we have fully understood your needs and your project. With so many different ways of funding home improvements, it is crucial that you speak with an expert to find the right solution for you.
No. We can offer you products from a range of lenders to suit your project.
One of the first things we'll check is whether you can remortgage your current home to release enough equity to fund your project.
This option is most suited to minor home improvements such as a new kitchen or bathroom, as opposed to more extensive works. Your borrowing capacity is limited as most lenders will only lend up to 80 - 95% of your home's current value, so you may not be able to release enough to cover the planned works. Also, many lenders will not lend where major structural works are being carried out
Unlike a traditional mortgage, with a stage payment mortgage your borrowing capacity is not limited by your home's current value.
You can potentially borrow enough to repay your current mortage and fund 100% of the improvement works - up to a maximum of 85% of the expected end value of your home when works are complete.
To enable money to be released in advance and provide a positive cash flow, BuildStore has designed a unique additional cash flow benefit scheme. This provides the additional security required by the lender to not only allow them to release money at the start of each stage of the build but to also allow a higher percentage of the costs to be lent during the project by some lenders.
The scheme ensures that you can borrow the amounts you need for each stage when you need them as the funds will be released as per the cost of your building work and will not be subject to confirmation by a mortgage valuation at every stage*.
Not necessarily. With an Ideal Home Improvement Mortgage you can start your project with a relatively small deposit by borrowing up to 95% of the purchase price of the property and up to 95% of the cost of the building works.
Yes, if you own a second unencumbered property, you could raise funds against this to fund the works on your current home. There must always be a clear exit route for how you'll repay the loan in full. You could refinance or sell your second property, or remortgage your current home based on its increased value.
If you are planning to sell or let your property after the works are complete, a short term development loan can be used to fund the works. Similarly a bridging loan against an existing property could be used to purchase the property and complete the necessary works. On completion you will repay the loan by refinancing or selling the property.
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