Remortgaging to Renovate: Have you considered it?02/12/2021
Let’s face it, mortgages aren’t exactly fun. Remortgaging might not sound much more appealing… but remortgaging to renovate and achieve your goals certainly sounds sweet. Imagine that pristine open plan kitchen you have bookmarked or the garden refresh you’ve been longing for… remortgaging can make these renovation fantasies a reality.
After spending many months working from home during the Covid-19 pandemic, many UK homeowners have honed in on the nagging aspects of their living spaces that they had previously overlooked; the outdated wallpaper, the cramped bathroom, the neglected guest room. Can you relate?
With more of us appreciating (or criticising!) our living spaces during lockdown, the desire to give our homes a makeover and some much-needed TLC can be overwhelming and costly. This is where remortgaging can help.
But what about the costs?
Did you know that as of August 2021, mortgage rates are at a record low? While it can be tempting to stick to what you’re comfortable with, once your fixed-rate mortgage comes to an end, you can be faced with hefty rates that are twice as expensive. It is recommended that you remortgage every few years to ensure that you’re getting the best deal.
If you have paid off a sizeable portion of your mortgage or the value of your property has increased, there is always the possibility that you have built up a good chunk of equity. You may be able to remortgage for a higher sum without seeing any increase in your monthly payments.
Many homeowners choose to remortgage to fund university fees or to help their children buy a home, while others opt to kickstart their own business or to undergo dream home improvements. Remortgaging allows you to release equity and get access to extra cash for your big renovation project.
But should I really spend the extra cash on renovations?
Choosing to remortgage and renovate your home can be a great way to raise your property’s value. Certain extensions can really boost the worth of your home; an extra double bedroom or loft conversion can result in an 11% increase, whereas a snazzy open-plan kitchen can increase your home’s value by up to 6 percent. So not only will you be able to host bigger and better house parties and show off your new modernised space to friends and family, but you’ll also be confident that your investment has had a value-boosting impact.
Clearly this is at the forefront of many UK homeowners’ minds, as three times as many of us (62%) are considering remortgaging for the sole purpose of renovating.
Is remortgaging a difficult process?
The process is not as much of a faff as you may think. The remortgaging procedure is relatively quick and can be done and dusted in as little as six weeks. Our B-Advised specialists can speed up the process and add a level of protection if you need support. We’ll contact mortgage lenders for you and compare a wide range of deals that are not available on the high street, making sure you get the perfect fit for you and your family.
Are you feeling inspired and looking to redecorate? If you’d like more information on remortgages, or if you’re coming to the end of your fixed-rate mortgage in the next 3-4 months, we can offer advice and assistance to get your special renovations underway. Contact us on 0191 495 6278 or 0161 241 5138 for a chat with one of our friendly advisers.