Home improvements are a vital part of homeownership for many households. Whether your focus is on adding value to your home to generate more significant offers when you sell it, or to make your home more pleasurable or functional when you live in it, home improvements are worth pursuing, which is why raising money for home improvements is important.
However, some home improvements such as a loft conversion or an extension are expensive, which is why many homeowners look for ways to raise this money and taking out a remortgage for home improvements is an option.
Is remortgaging better than home improvement loans?
Many people find remortgaging is usually more affordable than arranging a personal loan to cover the cost of home improvements, as you are spreading the payments over the length of your mortgage, as opposed to a maximum of 60 months with a personal loan.
However, it is vital homeowners recognise that in doing so, they will pay more money in the long-term. This is because the interest associated with the additional payments over the length of the mortgage increases the overall amount paid.
With a remortgage you can borrow larger sums of money when compared to personal loans which are generally limited to £25,000.
Every homeowner has unique circumstances, and you must review your finances and affordability before committing to either option.
Should I Remortgage with my current lender?
While it is possible to remortgage with the same lender you currently hold your mortgage with, this isn’t necessary.
The critical aspect to focus on is arranging the most suitable deal for yourself. It might be that to leave your current lender to use another lender’s service will incur exit costs. Fees of this nature might offset any benefit that comes with switching to a more affordable mortgage. Therefore, this must be considered before deciding on how to fund your home improvement.
Speaking to a broker who can review what your current lender will offer you and compare this against what the market has to offer is a good idea.
Borrowing money against your home is a decision that should take a lot of thought. Getting good remortgage advice is important. Additionally maybe a secured loan or a further advance could be an option to raise the money required.
Is borrowing money for home improvements worth it?
What something is worth depends on a variety of matters. If remortgaging provides you with funds to improve your home that helps you enjoy your house for many years, or ensures you enjoy more use, it can be argued as being worth it.
Money for home improvements can add value to a house
There is also a financial aspect. Many homeowners will view the cost of home improvements alongside the increase in the value of their property. If remortgaging allows you to add sufficient value to your property, it is likely it will be deemed a successful activity.
For many homeowners, a combination of short-term enjoyment and long-term financial return justifies the cost of the home improvements.
I have bad credit – can I get a mortgage?
If you have bad credit registered such as missed payments, defaults, county court judgements (CCJ) – we have lenders that provide bad credit remortgages and specialise in helping clients with low credit scores.
How to explore your mortgage options with The Money Hub
Call The Moneyhub Limited on 0203 725 5830 and speak to one of our highly specialised and dedicated Mortgage Advisors or you can complete an enquiry form which will allow you to schedule a call time.
DISCLAIMER: These articles are for information only and should not be construed as advice. You should always seek advice prior to taking any action.