Do you dream of a bigger kitchen, a home office, that fourth bedroom you really need, or a kid’s playroom for all those toys?
But you just can’t afford the additional costs of moving home.
You might have thought about making changes to your current home?
But perhaps you’re not sure how you could fund these changes without a big pot of savings (that you don’t have), or by taking out a large and possibly expensive loan?
Remortgaging offers a solution for many who want to make improvements and renovations at home.
Offering a way to release the funds you need to give you that extra space and the home that you dream of. As well as potentially adding value to your property too.
How does remortgaging for home improvements work?
Remortgaging is a process of switching your mortgage to a new lender or deal.
This provides an opportunity to borrow more funds by releasing equity in the current value of your home that can then be used for home improvements.
You then take on new mortgage made up of your remaining mortgage balance plus the further borrowing amount.
So, for example, if your remaining mortgage balance is £170,000 and you want to borrow £25,000 for a loft conversion. Your new mortgage would be for £195,000.
Should I remortgage for home improvements?
You need to have the equity in your home to allow for the additional borrowing. But using this equity can be an ideal way to finance the often-large cost of a big home improvement project.
And the more equity you have (and the lower your LTV rate) the better the deals that will be available to you.
Lenders will need to know the reason for the additional borrowing when you remortgage. But they’ll look favourably on home improvements as these usually add value to the property.
You’ll need to check whether you have any early repayment fees on your current deal too. As if so, you may want to wait to remortgage until these fees don’t apply.
How much can I borrow?
Everybody’s circumstances are different so that’s why when it comes to borrowing against your home, speaking to a mortgage adviser is essential.
By looking at rates across the market an experienced adviser will help you to find the product that best suits your needs and your financial situation.
At Mortgagemove we offer a free 15-minute discovery call to establish which lenders and deals could be available, and what’s the right solution for you.
Book a 15-minute discovery call with one of our team by calling our freephone mortgage advice line on 0333 005 0333 and we’ll get the ball rolling. Alternatively, please text ADVICE to 82228.
Your dream home could be closer than you thought.
Your home may be repossessed if you do not keep up your mortgage repayments.
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