Could a Remortgage Help Fund Your Next Garden Building?

Garden buildings have become part of the home

The humble garden shed has changed considerably. What was once mainly somewhere to store lawnmowers, bikes and gardening tools can now become a workshop, home office, hobby room, studio, gym, games room or simply to escape the house for a while.

Larger garden buildings have opened up even more possibilities. A properly planned garden office can provide dedicated working space, while a garden room can become a flexible space for hobbies, guests or family use. A well-equipped workshop can give DIY enthusiasts somewhere to work without taking over the kitchen, garage or spare room.

Of course, these projects cost money. The building itself is only part of the budget. Depending on the project, you may also need to consider the base, ground preparation, insulation, windows, doors, electrics, heating, decoration, furniture and internet connection.

That is why some homeowners look at their wider household finances before starting a major garden project. For some people, that may include reviewing their mortgage.

What is a remortgage?

A remortgage generally means moving from your existing mortgage to a new mortgage deal, either with your current lender or another lender. Homeowners may consider remortgaging when their existing deal is coming to an end, when they want to review their options, or when their circumstances and borrowing needs have changed.

A remortgage is not automatically the right choice for every homeowner. Mortgage rates, property value, outstanding borrowing, income, expenditure, credit history, fees and the terms of your existing mortgage can all affect the options available.

If you are considering borrowing additional money for a home improvement, it is particularly important to understand the total cost of borrowing rather than concentrating only on the monthly payment.

What could you use the money for?

Every homeowner's circumstances are different, and any additional borrowing would be subject to lender criteria and an assessment of affordability. However, people planning property improvements might be considering projects such as:

Think about the whole project, not just the building

One of the easiest mistakes when planning a garden building is concentrating on the advertised price of the building and forgetting everything around it.

A new shed may need a suitable base. A garden office may need insulation and electrical work. A larger garden room could involve ground preparation, drainage, glazing, heating and interior finishing. You may also want furniture, storage, lighting and decorating materials.

Creating a simple project budget before making any financial decision can therefore be useful. Separate the cost of the building from installation and site work, then add the equipment and finishing touches you actually need.

It is also sensible to keep some money aside for unexpected costs. Ground conditions, delivery access and changes to your plans can all affect the final figure.

Could a remortgage be worth investigating?

If your mortgage deal is approaching its end, or you are already considering your wider financial position, it may be worth getting professional advice about your options. A remortgage can involve reviewing your existing deal, comparing available products and considering whether your current borrowing still suits your circumstances.

For homeowners planning renovations or improvements, one option that may be discussed is releasing equity from the property through additional mortgage borrowing. Depending on your circumstances, this could potentially provide funds towards eligible home improvements such as a garden office, garden room, workshop or other renovation work.

Some remortgage services also offer cashback or other incentives for eligible customers. Where cashback is available, it is important to check the qualifying criteria, payment conditions and overall mortgage costs rather than focusing on the incentive alone.

A mortgage adviser can look at your individual circumstances and explain what options may be available. This can be useful if you are considering changing your mortgage, reviewing your rate, or investigating whether additional borrowing for improvements may be possible.

Don't borrow simply because you can

A garden building can be a fantastic addition to a property, but it is worth separating the excitement of the project from the financial decision.

Increasing mortgage borrowing can mean paying interest over a longer period, and the overall cost can be considerably higher than the amount originally borrowed. There may also be fees or early repayment charges associated with changing your mortgage. Your property may also be at risk if you do not keep up mortgage repayments.

Before making a decision, work out what the project is likely to cost, how much you actually need to borrow and whether the proposed improvement is affordable within your household budget.

A garden building can be an investment in how you use your home

One of the biggest advantages of a well-designed garden building is flexibility. The same space might start life as a home office and later become a hobby room, workshop, studio or quiet retreat.

That flexibility is one reason garden buildings have become such a popular part of home improvement planning. But whether you are building a simple shed or a fully insulated garden office, the financial side deserves just as much attention as the design.

If you are already thinking about your mortgage, getting professional advice can help you understand your options before committing to a project. You can then make a more informed decision about whether your plans, budget and mortgage arrangements work together.