Mortgage plus renovation, the best option to renovate your home?

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During the Covid-19 pandemic, many people have considered renovating their home to make it a more welcoming place. But not only that, a large part of the population has decided to change homes and buy a house with a mortgage that best suits their new preferences. A new trend that has caused an increase in requests for the financial product: mortgage plus reform.


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When buying a home, banks usually finance up to 80% of the value of the Chinese Overseas America Number Data home and this can be a problem for those who plan to buy and renovate the home. And although everyone thinks about applying for a mortgage and then a personal loan to cover the cost of the renovation, did you know that there are mortgages that include the renovation of your home?

Mortgage plus reform, what does it consist of?
Although it is not impossible, getting a 100% mortgage or with financing higher than 80% is a complicated operation. As it is a mortgage plus renovation, this type of mortgage loan will be requested by people who have bought a second-hand home. Generally, this type of property in use is valued at a lower price but the value of the home would increase with the renovation you are thinking of carrying out.


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There are many financial entities that even offer 90% mortgages , although this type of mortgage requires prior negotiation and a series of stricter conditions due to the risk that the banks assume.

Getting financing to renovate is easier with a mortgage broker
It is true that the help of financial intermediaries is essential if we want to achieve more exclusive conditions with the banks . In this case, where the mortgage has high financing, the mortgage broker plays an important role in approving a mortgage plus renovation.



Many free mortgage brokers manage to obtain high financing, even obtaining 100% of the valuation of the apartment to be renovated. Of course, the client's economic profile and the guarantees they can offer to the financial institution are essential to favor the negotiation of the mortgage loan.

Likewise, these financial intermediaries will negotiate the conditions of the mortgages on your behalf, obtaining the mortgage that best suits your economic and personal profile . In addition, this intermediary will take care of all the paperwork involved in applying for a mortgage online or in person and will advise you at all times to close the mortgage successfully.

Are there other alternatives to finance my renovation?
Currently there are some options to finance the renovation of a home. Among them we find:

Personal consumer loan for renovations : An option that is on the minds of many people when they think about renovating their home. These types of loans have a higher cost, the maximum capital to be financed is usually around 60,000 euros and the financing term is usually short, between 7 years, and the cost of the installments is consequently higher. It should also be noted that this option is designed for not very high amounts.
Mortgage capital increase : This alternative will be an option for you when you are currently paying for a mortgage. The cost of this option is lower than a personal loan with a fee for a longer term, but it has its formalization costs. The total amount financed, that is, what remains of the mortgage plus what is requested for the renovation, cannot exceed 80% of the value of the home.
A new mortgage : Another alternative would be to request a new mortgage. The period to return the capital is long and you also only have to count on the cost of formalization. These are the cheapest options but you must have the home to be renovated fully paid for and the renovation cannot be more than 50,000 euros. It must be taken into account that most banks give this mortgage for a primary residence .