How to finance home improvements with a mortgage

A property should have two bathrooms for every three bedrooms to maximise its value and desirability. That’s according to 70 per cent of real estate experts from across the UK who were quizzed by Direct Line Home Insurance. On average, they estimated an extra bathroom could add just under 7 per cent to the £174,340 average value of a three-bed property – a boost of almost £12,000. Of course, the figures change significantly depending on where in the country the home is located. For example, the extra bathroom could add £26,485 to the value in London but just £5,967 in Liverpool. With the average cost of installing a new bathroom estimated to be between £4,000 and £5,000, the UK average added value of just under £12,000 would result in a return of between 140 and 200 per cent. If you’re planning to add to your home – be it a bathroom, kitchen, bedroom or loft conversion – but can’t afford to pay for it in cash, there are three main mortgage options for financing an extension.