Should I Remortgage Before or After Home Improvements?

The Key Question: Do You Need to Borrow for the Improvements?

The answer to whether you should remortgage before or after home improvements depends largely on how you are funding the work. If you need to borrow money to pay for the renovations — by releasing equity from your property — then you will need to remortgage first to access those funds. In this case, the remortgage is the mechanism that unlocks the capital for your improvements.

If you are funding the improvements from savings or other sources, the decision is more nuanced. Completing the renovations before remortgaging could increase your property's value and lower your LTV, potentially qualifying you for a better rate. However, this only works if the improvements genuinely add value and the property is revalued as part of the remortgage process.

It is also worth considering whether a further advance from your existing lender — an additional loan on top of your current mortgage — might be a simpler way to fund improvements without going through a full remortgage. This can be arranged quickly and may not require a property valuation, though the rate may not be as competitive as the best remortgage deals.

Remortgaging Before Improvements: Releasing Equity

If you plan to release equity to fund your renovations, you will remortgage for a higher amount than your current balance. The additional funds are released to you as cash at completion. For example, if your current mortgage is 150,000 pounds and your home is worth 250,000 pounds, you could potentially remortgage to 200,000 pounds (80% LTV) and receive 50,000 pounds to spend on improvements.

Be aware that borrowing more increases your LTV, which may affect the rate you are offered. Lenders will also assess whether you can afford the higher repayments. You will need to provide details of the planned improvements and demonstrate that the additional borrowing is manageable alongside your other commitments.

One important consideration is that by remortgaging before the improvements, the lender values your property in its current state. You do not benefit from any uplift the renovations might bring. This means your LTV — and therefore your rate — is based on today's value, not the improved future value. For significant renovations that would add substantial value, this could mean missing out on a better rate bracket.

Remortgaging After Improvements: Benefiting from Added Value

If you can fund the improvements without borrowing, completing them before remortgaging can be a smart strategy. Renovations that increase your property's value will lower your LTV at the point when the new lender values the property. This improved LTV could push you into a better rate bracket, saving you money over the term of your new deal.

The improvements most likely to add value include kitchen and bathroom renovations, extensions, loft conversions, and general modernisation work. These are the types of improvements that surveyors recognise as adding tangible value. Cosmetic changes like redecorating may make the property more appealing but are less likely to shift the formal valuation significantly.

Timing is important here. You need the improvements to be completed before the lender's surveyor visits to value the property. If the work is only partially done, or if the property is in a state of disarray, the surveyor may not give full credit for the improvements or could even down-value the property. Plan your renovation timeline carefully to ensure everything is finished and presentable before the valuation.

Which Improvements Add the Most Value?

Not all home improvements are equal when it comes to adding property value. Extensions and loft conversions typically offer the best return on investment, as they add usable floor space — the single biggest driver of property value. A well-executed extension can add 10% to 20% to a property's value, though costs vary significantly depending on location and specification.

Kitchen and bathroom renovations are the next most impactful improvements. A modern, well-designed kitchen can add significant appeal and value, as can an updated bathroom or the addition of an en-suite. These improvements are relatively cost-effective compared to structural work and tend to be well-recognised by surveyors.

On the other end of the scale, very personal or niche improvements — such as swimming pools, elaborate landscaping, or unusual conversions — may not add proportional value. Surveyors value properties based on what a typical buyer would pay, so improvements that appeal to a broad market tend to deliver the best return. Before spending money, research what similar properties in your area have sold for and what features they had.