If you want to upgrade your home, new insulation, a better kitchen, or a loft conversion, the biggest hurdle is often how to fund it without emptying your savings.Most homeowners don’t want to dip into emergency funds or pay for everything upfront, especially when costs can be unpredictable.

The good news is that there are several ways to raise capital that don’t require large out-of-pocket payments. These options let you spread the cost, use your home’s value, or access support schemes so you can get the work done without draining the cash you rely on day-to-day.

1. Remortgaging to release equity

Many homeowners fund improvements by remortgaging to borrow more against their property.

You replace your current mortgage with a new (larger) one. Any extra funds released at completion can be used for your project.

Good for:

• Large or structural upgrades (£20,000+)
• When your fixed rate is ending
• Homes that have increased in value

Watch out for:

• Early repayment charges if you’re mid-fix
• Higher loan-to-value pushing up rates
• Longer terms increasingtotal interest paid

Speak to your mortgage advisor about options for raising capital through a mortgage.

2. Further advance from your current lender

A further advance is a top-up loan from your existing lender, separate from your main mortgage.

Good for:

• Mid-sized projects (£10,000–£40,000)
• When your existing mortgage rate is “too good to touch”
• Avoiding remortgage fees

Watch out for:

• A second, separate interest rate
• Full affordability checks
• Sometimes less competitive than remortgaging

3. Second charge mortgage

A second charge is a separate secured loan that sits behind your main mortgage.

Your original mortgage stays exactly as it is.

Good for:

• Avoiding early repayment charges
• Protecting a very low existing rate
• Larger projects (£25,000+)

Watch out for:

• Higher interest rates
• Two monthly payments
• Possible early repayment charges

4. Unsecured personal loan

For smaller works, a personal loan can be quicker and easier than secured borrowing, and doesn’t involve touching your mortgage.

Good for:

• Bathrooms, kitchens, cosmetic refurbishments
• Borrowing £1,000–£25,000
• Fast approval

Watch out for:

• Higher interest rates
• Shorter terms = higher monthly repayments

5. Government schemes (when eligible)

Government support usually focuses on improving energy efficiency.

Examples include:

• Great British Insulation Scheme (GBIS)
• ECO4
• Local authority insulation or heating grants

These schemes don’t hand out cash directly, but they reduce how much you need to borrow by covering part of the cost. Eligibility varies, and applications often require evidence of EPC.

Click here to read more about Great British Insulation Scheme

What to consider before choosing an option

1. Total cost, not just monthly cost: Cheaper monthly payments can hide higher overall interest.
2. Will the improvement add value? Insulation, heating upgrades, and adding bedrooms usually add the most resale value.
3. Your EPC rating: Energy improvements can lower bills and support future mortgage affordability.
4. Risk appetite: Secured borrowing is cheaper than unsecured, but it puts your home at risk if you fall behind.
5. Project overruns: Almost all works cost more than planned — allow a 10–15% contingency.

Final thoughts

None of this should be interpreted as financial advice. We recommend consulting a professional before taking out debt.

A mortgage adviser will be able to help you understand your options and the risks.