How Home Improvement Mortgages Work | BuildStore


Unlike a traditional mortgage, your borrowing capacity with a home improvement mortgage is not limited by your home's current value. You may be able to borrow enough to repay your existing mortgage plus fund 100% of your improvement works- up to a maximum of 85% of the expected end value of your property.

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Home Improvement

How Home Improvement Mortgages Work

Home Improvement mortgages release funds in stages – in arrears or in advance. Depending on your individual circumstances, your stage payments will either be guaranteed based on your costs, or rely on an uplift in value at each stage.

BuildStore’s unique cost based mortgages provide guaranteed stage payments based on your build costs either before or after each stage of works, depending on your payment schedule. This way you will have certainty in your budget, and peace of mind knowing you’ll have the cash you need, when it’s needed.

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A valuation based mortgage releases funds to buy the plot, and then after each stage of works are complete - where a valuation has taken place showing an uplift in value. This can cause problems because there is a risk of the property being devalued during the build.

The lowest rate, minimal fees and the total loan amount may be uppermost in your mind for a house purchase, but when it comes to improving your home, the single most important factor is cashflow, and ensuring sufficient funds are available, at the right time during your project.

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  • Stage 1 Purchase/remortgage of the property
  • Stage 2 Stabilisation works, includes demolition and injection of damp proof course (DPC) plus any roofing works necessary
  • Stage 3 Services, first fix
  • Stage 4 Practical completion of all rooms, completed and plastered
  • Stage 5 Internal finishes (including installation of kitchens, bathrooms, doors, facings and decoration