Remortgaging for home improvements
Are you feeling like renovating your home and bringing it back to life? Maybe a new kitchen diner or possibly a loft conversion for that extra space? The good news is you can fund your renovation project with your remortgage.
How much will your renovation cost?
When adding to your home it is important you have considered the overall cost for the extension and ensure you have taken into consideration any costs that may appear along the way! We have a home renovation calculator to help give you an idea of how much your renovation may be, we just need your postcode and the answer to a few questions!
Our calculator can help show you how much extra a month this renovation could be, it may seem it only adds a small amount onto your monthly repayments! If you are still unsure or aren’t happy with the quote our calculator has given our friendly advisers can help, feel free to get in touch here.
Can I remortgage to renovate my home?
If you’re thinking of adding to your home with a renovation you can release some of the equity in your home through a remortgage and use it to pay for the renovation costs. A remortgage is where you arrange a new mortgage with a lender, our team can help with this and find the right deal for you. Now may be the right time to remortgage due to the increase in the bank of England base rate!
Before remortgaging there are a few things you may want to consider:
- Early repayment charges – if you are wanting to leave your current mortgage deal before it ends you may have to pay an early repayment charge which should be considered into your renovation calculations.
- Any other costs – this can be anything such as an arrangement fee, booking fee or a valuation fee. Don’t forget to include these into your budget!
What if I am happy with my current lender?
This is great if you are happy with your current lender as they can still help fund your renovation with additional lending. This is a great option for those who are in a fixed term mortgage and your early repayment charge is a lot of money. But we would recommend you get in touch, and we can help advise on what is best.
Are there benefits to renovation?
The big question – how much can a renovation add to the value of a home? Adding the extra room or converting your loft space can mean you have much more space in your home however it can also be a great way to climb the property ladder (if the renovation increases the property value).
You do need to think about if your renovation will add value to your home, as some can be damaging and devalue your home. For example adding an extra bedroom in your home can make a substantial impact to the value however extending your current lounge area isn’t as worthwhile in terms of your homes value.
Can I fund my renovation another way?
If you are thinking of how to fund your renovation it is important to look at your financial situation as a whole and take into account, all factors. You may have been saving for a while and prefer to fund your renovation this way and borrow less when you remortgage.
We know renovations can be stressful which is why we mean it when we say if you have any questions or just fancy a chat, Mortgage Advice Bureau Crawley are more than happy to help. Give us a quick call here or contact us and we will be in touch!