Before our mortgage term end, can I increase the loan to fund home improvements?

Posted on 21 June 2016


"We currently have a mortgage of £116,000 on our principal home which comes to fruition at the end of 2017 but wish to explore the possibility of increasing it to £160,000 to do some improvements on the property and spend a little on ourselves. Repayment is out of the question since income couldn't sustain the repayments over what will be a short period. Both of us are in very good health. What can you advise."

Thank you for your enquiry via our ‘Ask the Experts’ section of our website.

Although not knowing your full financial position, it would appear, based on the information you have supplied that this something we can help you to explore. From the details you have supplied you could get a remortgage to raise capital to improve your residential property.

You actually have a couple of options, you could remortgage your principal home with another lender, but if your current mortgage is on a preferential rate this may attract early repayment charges. Alternatively you could approach your current lender and request a further advance. However, the problem with this is the lender may not agree to extend your mortgage term.

However, you could consider remortgaging one of your 2 flats and release some equity for the home improvements. Although I would need to know if the flats are unoccupied or currently let out? If they are Buy to Let’s additional information such as details of outstanding debt, property valuation, monthly rental income and a copy of the tenancy agreement would be useful in choosing an appropriate lender. Most lenders restrict capital raising to around 75% LTV, so you should have variety of lenders to choose from should the properties but this is dependent on available equity.

To help you get an idea of which rates might be available for you we would need your full financial details, for example full details of your income and financial commitments as well as investments. On receipt of these details we can discuss the best options available for you.

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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.