A renovation mortgage (also known as a refurbishment or home improvement mortgage) is a specialist loan designed to fund the purchase of a property that needs work, or to help finance major renovations on a property you already own.

This type of mortgage is ideal for:

• Run-down properties (properties need to be habitable)
• Adding value through renovation
• Major home improvements like extensions, loft conversions, or structural work

If you are hoping to apply for a renovation mortgage, there are a number of things to consider. Firstly, many lenders won’t offer a mortgage if the property isn’t already classed as habitable. If the property is in need of conversion, is currently derelict or has no working kitchen or bathroom, you may need to approach a specialist lender. The team at Watts have experience in even the most unique situations, helping you to access the right type of funding based on your needs.

Getting the right mortgage to help fund your home improvements or renovations is also known as remortgaging your home, which can help you access an increased amount of borrowed money.

The amount you’re able to borrow in order to carry out any renovation work can depend on your individual circumstances. It can also depend on how much repair work needs doing on the property, as lenders can offer various loan-to-value ratios and may have additional criteria that must be met. For instance, lenders may withhold some funds, known as a retention, until the completion of essential repairs.

The amount you can typically borrow is usually calculated on a multiple of your income, although lenders can assess other criteria too.

As a whole-of-market broker, we’re not tied to any single lender. This means we can access a wider range of deals than many banks or building societies offer directly.

With Watts, you’ll benefit from:

• Independent mortgage advice tailored to your needs
• Access to exclusive rates not available on the high street
• Transparent fee structure and honest recommendations
• Nationwide and local expertise
• Stress-free application support from start to finish
• A multi-award-winning mortgage and life insurance business, set up by the Watts family over 35 years ago.

1. Get a detailed renovation plan
   Lenders want to see exactly what you’re doing with the property. Include builder quotes, architectural plans, and timelines.
2. Use a whole-of-market broker
   Not all lenders offer renovation mortgages. As an independent, whole-of-market broker in Nantwich, Watts Mortgage and Wealth Management Ltd has access to specialist deals not available directly to consumers.
3. Budget for the unexpected
   Renovation projects often go over budget. Build in a 10–20% contingency to avoid funding shortfalls.
4. Check the property’s current condition
   Lenders may require a structural survey. Properties without a kitchen, bathroom, or with major structural issues can be tricky—but not impossible—with the right lender.
5. Consider the property’s end value
   Some lenders will base the mortgage on the projected post-renovation value, which can help you borrow more. We help assess this as part of our advice process.