Financing your loft conversion, extension or home improvement
If you are planning some big changes to your home, whether it’s an extension, loft conversion or remodelling, there are a number of finance options available.

It pays to speak to a specialist broker that can look at your individual circumstances and recommend the most cost effective solution for your project. Here at Add A Room, we recommend BuildStore Financial Services – the UK’s experts in finance for home improvement mortgages and finance. Their expert advisers have access to the whole of the lending marketplace as well as many exclusive deals too.


One of the most common ways of raising finance for home improvements is a remortgage. This allows you to take out a new mortgage on your property, to pay off the original mortgage, leaving you with some remaining funds which are then used to finance the improvements to your home, based on either the current value of your house or the projected value after your improvements are completed. By raising funds this way you are effectively repaying the additional borrowing over the full mortgage term, so the costs are being spread.

When considering a remortgage, check with your current lender if there are any fees associated with the redemption of the mortgage. For example you may be liable to fees if you are currently on a fixed-rate term, or you received a cash back amount when first taking out the mortgage. These fees can add up to considerable amounts which may mean this is not the best option for you. Check the small print on your original mortgage offer.

Short term loan

Depending on the amount required to make the improvements to your property, it may be possible to borrow the extra amount by means of a short-term loan. There are broadly two options: for amounts up to £50,000 a secured loan, whereby the lender takes a second charge over your property (just as your main mortgage lender takes a legal charge over your house, so will the new lender); or for amounts up to £25,000 an unsecured loan where no legal charges are taken over your assets. Because loans are typically taken over a shorter period than a mortgage, monthly payments will tend to be higher, but overall interest paid over the term will be lower. Interest rates and fees vary considerably, but are typically considered higher than mortgage rates –generally between 7% – 14%, plus fees.

Please read the information below carefully

As with all financial matters, it is important to consider all of the options available to you before opting for a particular solution.  These are only guidelines and we recommend that should speak to a finance specialist, who can advise on your particular circumstances and project