How To Renovate Your Property With a Remortgage!
If you've been living in your home for a while, chances are you've thought about updating your living space. Perhaps you're dreaming of a bigger kitchen, an extra bedroom, or a dedicated home office. Instead of navigating the complexities of moving, why not join the growing trend of enhancing and expanding your current home?
The good news? Funding your renovation project might be easier than you think. Remortgaging your home could provide the financial boost you need to bring your renovation dreams to life.
What Is Remortgaging, and How Can It Fund Renovations?
Remortgaging involves securing a new mortgage deal to replace your existing one. If your property has increased in value since you bought it, you likely have equity—essentially the difference between your home's market value and your remaining mortgage balance. By remortgaging, you can unlock this equity and use it to finance your home improvement project.
Whether you’re planning a loft conversion, a kitchen upgrade, or an extension for a cosy home office, accessing your property’s equity could be a practical way to cover renovation costs.
Considerations Before Remortgaging
While remortgaging can be an effective solution, there are a few important factors to consider:
- Early Repayment Charges: If your current mortgage deal hasn’t yet expired, switching to a new deal may result in early repayment charges. These fees can impact your budget, so be sure to check the terms of your current mortgage agreement.
- Additional Fees: Remortgaging often comes with costs such as arrangement fees, valuation fees, and booking fees. Be sure to include these in your calculations to avoid surprises.
- Consulting a Mortgage Adviser: Every financial situation is unique. Speaking with a qualified mortgage adviser can help you understand whether remortgaging is the right option for your circumstances.
Can I Borrow More From My Current Lender?
If switching to a new mortgage deal isn’t ideal—perhaps due to early repayment charges—consider extra borrowing from your existing lender. Many lenders offer additional borrowing options, allowing you to access funds for renovations without changing your current mortgage.
This could be a great alternative if you’re locked into a fixed-term deal and don’t want to face penalties for switching before it ends. Again, consulting with a mortgage adviser can help clarify your options.
The Benefits Of Renovating Your Home
Renovations can do more than enhance your living space—they can increase your property’s value. For example, adding a bedroom or upgrading your kitchen might significantly boost your home’s resale value, making renovations a worthwhile investment.
However, the type of renovation matters. Conduct research to ensure your improvements align with market demand. For instance, adding a luxury bathroom might not yield the same return as a more practical upgrade.
Working with an estate agent can provide insights into your property’s current value and its potential post-renovation worth. You can also explore local property listings to see how similar projects have impacted nearby homes.
Other ways to fund your renovation
While remortgaging is a popular option, it’s not the only way to finance home improvements. If you have sufficient savings, using them might be the most straightforward solution. Alternatively, a personal loan could help cover costs, though it may come with higher interest rates and shorter repayment terms.
Renovating your home is a big decision, but with careful planning and consideration, it can be a rewarding investment. If remortgaging seems like the right path for you, discuss with a trusted mortgage adviser who can guide you through the process and ensure it aligns with your financial goals.
Ready to explore your options? Contact our friendly team today and take the first step toward transforming your home!
*You may have to pay an early repayment charge to your existing lender if you remortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for arranging a mortgage. The actual amount you pay will depend on your circumstances. The fee is up to 1.5% but a typical fee is 0.3% of the amount borrowed.
