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4 ways to fund a home extension


24 Feb 23

Home extensions can be a great way to add much-needed space and value to your property, but they can also be a significant financial investment. If you’re considering a home extension in London, you may be wondering how to fund the project. Here are some options to consider.

Personal savings

One of the most straightforward ways to fund a home extension is to use your personal savings. If you have a significant amount of money saved up, you may be able to pay for the extension outright. This option eliminates the need to take on debt and can save you money in the long run by avoiding interest payments. However, it may not be feasible for everyone.

Home improvement loans

Another option to consider is a home improvement loan. These loans are specifically designed for home renovation projects and can provide a lump sum of money that can be used to fund your extension. You can get a home improvement loan from a bank, credit union, or other lender. Be sure to shop around for the best interest rates and loan terms.


If you have built up equity in your home, you may be able to remortgage to fund your home extension. Remortgaging involves taking out a new mortgage on your property and using the extra funds to pay for the extension. This option can be attractive because mortgage rates are often lower than other types of loans. However, it’s important to consider the long-term financial impact of taking on more debt.

Equity release

Equity release is another way to access the value in your home to fund a home extension. It involves taking out a loan against the equity in your property, which is paid back when you sell the property or after you pass away. This option can be attractive for older homeowners who may not have access to other forms of credit. However, it’s important to understand the fees and interest rates associated with equity release and to consider the impact on your estate.

In conclusion, there are several ways to fund a home extension in London. Whether you use personal savings, take out a loan, remortgage, use equity release, or crowdfund, it’s important to carefully consider the financial impact of each option and to choose the one that’s right for your individual circumstances. With careful planning and consideration, you can fund your home extension and enjoy the benefits of extra space and added value to your property.

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