Best Remortgage for Home Improvements 2026

Quick Answer: Best Home-Improvement Remortgage in 2026

How Home-Improvement Remortgaging Works

You increase your mortgage to fund the project:

• Releasing equity — you remortgage for more than your current balance, taking the difference as cash to pay for the work. Your loan and LTV rise accordingly.
• Accepted reasons — home improvements are among the most lender-friendly reasons to raise capital; most won't query a reasonable kitchen, bathroom, extension or renovation.
• Value uplift — well-chosen improvements (extensions, loft conversions, kitchens) can add more to your home's value than they cost, partly offsetting the extra borrowing.
• Evidence — for larger sums, lenders may ask for quotes or plans; modest amounts are usually granted on declaration alone.

Borrowing for Improvements: Rates by LTV (2026)

Resulting LTV	Typical 2-yr fix	Typical 5-yr fix
60% LTV	4.5-4.9%	4.3-4.7%
75% LTV	4.7-5.2%	4.5-4.9%
85% LTV	5.0-5.5%	4.8-5.2%
90% LTV	5.3-5.8%	5.0-5.5%

Raising funds pushes you into a higher LTV band, so the rate on your whole loan may rise slightly — factor that into the project budget. Energy-efficiency improvements may unlock cheaper green deals.

How to Fund Your Project Cost-Effectively

To get the best result:

• Time it with your deal end — raising funds at remortgage avoids early repayment charges; if you're mid-deal, a further advance or secured loan may be better.
• Keep LTV in check — borrow what the project needs, not more, to protect your rate.
• Explore green deals — insulation, heat pumps, solar and efficient windows may qualify for cheaper green remortgage products or cashback.
• Have quotes ready — for larger sums, lender questions are smoother with builder quotes or plans.
• Use a broker — to maximise the amount you can raise and find the cheapest deal at your new LTV.

Best Alternatives to a Home-Improvement Remortgage

Depending on timing and amount, also consider:

• Further advance — borrowing more from your current lender mid-deal, avoiding a full remortgage and any ERCs.
• Secured loan (second charge) — keeps your existing mortgage rate; good for mid-deal borrowing or if you'd lose a cheap rate by remortgaging.
• Unsecured personal loan — for smaller projects you can repay quickly without touching your mortgage.
• Green remortgage — if the work is energy-efficiency focused, a dedicated green deal may be cheaper.