If You Want To Add Value To Your Home, Then a Remortgage is Your Best Option

Over the last few years it has become more and more difficult to secure remortgage finance.  Falling house prices coupled with lenders’ increasing reluctance to lend has made it tough to switch home loans.  However, many people who have been able to remortgage have been able to take advantage of the ability to borrow extra cash to undertake improvements on their homes.

You can take out a remortgage with a new lender or remain with your existing one, and with a wide range of remortgage deals available, you’ll be spoilt for choice. You are able to fix your interest rate, obtain a discount or even take payment holidays and make overpayments depending on the type of remortgage product that you obtain.

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 example, if you’re looking specifically for an ‘equity release’ product, the remortgage rates can vary significantly.  Aviva offers a flexible option at 7.14 per cent with an inheritance guarantee and a fixed rate at 7.84 per cent with a lump sum.

There are various projects that can be done to add value to the property, such as updating the kitchen, adding a conservatory or converting the attic into a new bedroom. If you build an extension, this adds significant value to the property as you can potentially add more bedrooms, and even extend the size of your kitchen to make it more ‘family friendly’.

By making improvements to your property it makes it more attractive to potential buyers as they do not have to spend time and money on undertaking this work themselves.  And, of course, it makes your home a nicer place to live in whilst you are selling.

You can also make your home more attractive by simple internal redecoration.  New furnishings and curtains can improve the look of your home whilst repainting in a neutral colour can enhance the natural light and make the property look cleaner and more modern.

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.

With lenders having become stricter about who they lend to since the global financial crisis, remortgaging is not as easy as it used to be.  Whilst there are great remortgage deals in the market, examining other options may also be worthwhile.  For example, you could consider approaching your existing lender for a ‘further advance’ to undertake your home improvements. Or, you could also consider a ‘secured loan’ (sometimes called a ‘second mortgage’) although the interest rates applied to these loans tend to be higher than traditional mortgages.

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