A Remortgage Can Give You a Large Financial Warchest For Value Adding Home Improvements
It is extremely easy to add value to your property by undergoing home improvement projects, but one thing that holds many back is finding finance for such ventures. Obtaining a remortgage however can release equity from your home to fund home improvements.
These can be accessed through your existing lender or from another bank or building society. There are a range of different remortgage deals currently on the market; and these feature fixed rate remortgage deals, offset remortgages, variable rate remortgages and also buy-to-let remortgage packages, all these are available, as with all mortgages, dependent upon your status and circumstances. The main strength of any remortgage package is that it allows you to make important home improvements and therefore increase the value of your property.
As lenders continue to loosen their lending criteria, remortgage rates have improved. However, with some many deals in the market it is wise to seek professional advice if you’re looking to remortgage. A qualified mortgage broker can scour the market to find the best deals for you as well as advising you on what sort of remortgage will be the most appropriate. With products and lending criteria changing daily, a broker can help you keep on top of the mortgage market.
For those over the age of 50, equity release mortgages are available whereby you sell a proportion of your home to the lender, so only the interest is payable and this is only due for repayment on death or sale of the property. Remortgage deals are available for these types of mortgages too, and can allow you to pay for home improvements.
If you want to maximise the value of your property, adding extra living space is often a good place to start. A loft conversion or extension can be expensive but can add a significant sum to your house value. A new bathroom or kitchen is also a good way of increasing the sale price of your home.
All of the above refurbishments and improvements make your home more attractive to potential buyers and can also help to maximise the value of your property.
Your home might just benefit from some general redecorating. Changes don’t necessarily have to be architectural and they can simply include aesthetic changes such as new furniture, soft furnishings and carpets. Revamping the internal look of the house is a smart and cost effective way to give your home a more modern vibe, and it can be done by decorating rooms in airy but neutral colours and by adding subtle accent colours.
All homeowners must get their property professionally valued to access a remortgage deal and they must complete a loan application form. The costs of accessing a remortgage vary, depending on lenders chosen and the type of product applied for, however it is generally considered to be cheaper than taking out a first time mortgage.
If you’re looking to make your home more energy efficient, then depending on the type of property that you own, Energy Efficiency and Housing Renovation funding may be available. You can consult a specialist in these areas to determine whether cash can be made available to you for such work.
Even though remortgages have been tougher to obtain over the last few years they are many people’s preferred option when they want to raise funds for home improvements. Alternatives include approaching your existing lender for a ‘home improvement loan’ secured on your property although you may not be offered a preferential interest rate for this. You can also consider a secured or homeowner loan, although you will generally find that the interest rates on this type of ‘second charge’ borrowing are higher than a remortgage.
Timothy Frodsham writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.