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Will Saving More Than 10% Deposit Improve My Mortgage Options?

Many homeowners consider remortgaging when their current mortgage deal is coming to an end, but timing can be important. 

If you’ve recently carried out home improvements, or are planning to, you may be wondering whether those changes could help when it comes to securing a new mortgage deal.

While every lender assesses applications differently, home improvements can sometimes have a positive impact on your remortgage options by increasing the value of your property and improving your loan-to-value ratio.

Why property value matters when remortgaging

When you remortgage, lenders will typically look at the current value of your home alongside the amount you still owe on your mortgage. This helps them calculate your loan-to-value (LTV) ratio.

For example, if your home is worth £300,000 and your mortgage balance is £180,000, your LTV would be 60 per cent. Generally speaking, lower LTV ratios can give borrowers access to a wider range of mortgage products and potentially more competitive interest rates. 

If home improvements have increased the value of your property, this could improve your overall position when applying for a new deal.

Which home improvements can add value?

Not all renovations have the same impact on property value, but certain improvements are often viewed favourably by buyers and valuers.

Popular projects include:

     

      • Modernising kitchens and bathrooms

      • Creating additional living space

      • Loft conversions

      • Garage conversions

      • Improving energy efficiency

      • Updating windows and doors

      • Landscaping gardens and outdoor areas

     

    These types of improvements can make a property more attractive and functional, which may contribute to a higher valuation.

    Energy efficiency improvements are becoming increasingly important

    With rising energy costs and greater awareness of environmental issues, many homeowners are investing in energy-efficient upgrades.

    Improvements such as better insulation, double or triple glazing, modern heating systems and solar panels can enhance the appeal of a property. In some cases, they may also improve the home’s Energy Performance Certificate (EPC) rating.

    Will a lender automatically accept a higher valuation?

    Not necessarily. When you apply to remortgage, your lender may carry out a valuation of the property. This could be an automated assessment, a desktop valuation or a physical inspection, depending on the circumstances.

    Even if you’ve spent a significant amount on improvements, the increase in value may not always match the cost of the work completed. Property values are influenced by many factors, including location, local demand and wider market conditions.

    For this reason, it’s important to have realistic expectations about how much additional value improvements may generate.

    Speak to a mortgage adviser before remortgaging

    If you’ve recently improved your home, it can be worth reviewing your mortgage options before your current deal expires.

    A mortgage advisor can help assess your circumstances, discuss whether a new valuation may be beneficial and explore lenders that may be suitable for your needs.

    Every homeowner’s situation is different, but well-planned improvements can sometimes strengthen your remortgage position, particularly if they increase your property’s value or improve your loan-to-value ratio. 

    By reviewing your options early, you can give yourself more time to secure a mortgage deal that supports your long-term financial goals.