Use your savings

If you have savings in a bank account, then this is usually the best option, as you won’t be paying your project bills as well as the interest on top. But unfortunately not everyone has a pot to dip into when it comes to home projects. So what are your options?

Borrow more on your existing mortgage

If you aren’t tied in to any deal with early repayment charges or you’ve got a really good rate, then extending your mortgage is the most obvious route to releasing some equity from your home. If your rate is particularly good it’s likely to be the cheapest way to pay for home improvements. But make sure you speak to your lender as it might not be as clear cut and you may need to factor in additional fees.

Remortgage to release funds

If you aren’t bound by any restricted terms or periods on your current mortgage, then switching to a different mortgage lender and borrowing more is a good way to pay for home improvements. But you will need to be able to prove you can afford to borrow the bigger amount and there may be associated fees and costs. Plus there’s the logistics of setting up with a new lender, the credit checks, the paperwork etc… It’s always best to speak to your lender first to establish if there are any restrictions but then use a mortgage broker to scour the market for the best deal.

Take out a second mortgage

If remortgaging isn’t the best option for you, you could always take out a second mortgage or secured homeowner loan. It’s always best to seek the advice of a specialist lending broker to make sure you can cover the extended borrowing and timeframe to pay it back.

What other options are there?

Credit cards and unsecured loans offer an alternative but these often come at higher rates so you should weigh up the pros and cons carefully.

If you are looking to make some home improvements, you may find some of these services useful