Mortgage Update for April
Adam Nanson from Your Mortgage Expert provides the Mortgage Update for April. he talks further about how to finance your renovation project:
“If you are thinking about significant home improvements you’ll need to think about how to finance these. The first thing to do is to speak to a mortgage broker like Your Mortgage Expert.
“If you are increasing your financial commitments, it is always important to assess first whether you can afford it. And your broker will take the time to go through all these options for you.
“If you don’t have savings, there are various options available to you for funding your renovation. We will let you know whether adding the cost of home improvements to your mortgage will be cheaper for you than other forms of finance. For example, paying for the project with a personal loan or credit card.
“If you choose to remortgage your home, we have 5 top tips for taking out a remortgage to fund your renovation:
- Check how much equity you have in your house
If you need to borrow a certain amount for your project, you need to have enough equity in your house. If your property’s value has increased since you bought it, and you are in the same financial circumstances, you can usually remortgage for a higher loan value. If your home hasn’t increased significantly, however, remortgaging may not be possible for the full amount you need.
- Do you have any early repayment charges
Aim to remortgage at the end of your fixed term period. As switching deals mid-term can be very expensive. Speak to your broker if you want to remortgage mid term as they will check how much early repayment charge you will need to pay. In this circumstance, other options might cost you less, such as additional borrowing from your current mortgage lender or a secured loan (also known as a second charge) from a different lender.
- Speak to your broker about any costs of remortgaging
Make sure you look carefully at any fees involved with taking out your mortgage. There may be things like an arrangement fee, a valuation fee or a booking fee. Speak to your mortgage broker about these fees and ensure you include them in the total cost of your project.
- Check out Green Additional borrowing
Some lenders now offer products called “Green Additional borrowing”. If you’re looking to make energy efficient improvements to your home, it’s worth investigating whether you can obtain a cheaper mortgage rate. Lenders like Barclays, Nationwide and Natwest all have lower rates available for people looking to make energy efficient improvements.
- Ensure your renovations increase the value of your home
As costs rise, so do the costs of extensions. Materials like glazing have spiralled in price as have other building supplies. Things like extra bedrooms and bathrooms often add value whereas larger reception rooms or garden improvements may not add as much. Speak to an estate agent or architect before commencing work about what sort of things add value in your area.
To find out more, you can read our guide to remortgaging to renovate your home. Or if you have any further questions about the mortgage update for April, get in touch.
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“This was knight in shining armour stuff. Our conscientious mortgage broker was a delight to deal with from the off and the key to our dream home.”
Max and Martha, First Time Buyer customers from Cardiff
“Being in the Armed Forces I am away a lot, meaning it can be hard to attend meetings, answer emails and especially hard to fill in forms. Adam and his team were extremely helpful and understanding of our situation and provided help wherever they could. After our initial meeting where we provided our required details, we actually did very little of the hard work, apart from signing a couple of papers.”
Callum and Verena, First Time Buyer Armed Forces Mortgage Customer from Salisbury
“I expect my circumstances were fairly rare, but the help and guidance I received from you was invaluable. I feel that the personal touch you provide offers something that appeals to the soldier in me. During my service I always liked to have a point of contact, someone who was the “go to” specialist in their field. This provides a degree of assurance about a situation and it was refreshing to find that same degree of certainty transitioning to civilian life, particularly with something as important as a mortgage and buying our family home.”
Andrew and Helen, Armed Forces Mortgage Customers from Salisbury
“Even though we were used to having a mortgage on the rental property, paying a mortgage on your own home was still a bit of a shock after years of having married quarter rental deducted from your pay at source. But, at every step along the way, we felt reassured, understood and that we really mattered to Adam. Trust is an important concept for military families and we trusted Adam.”
Fiona and Graham, Armed Forces Mortgage Customers from Wilton
“As a contractor, it was difficult for me to obtain a mortgage through normal channels so it was great to find a mortgage adviser that specialised in contractor remortgages and understood the challenges. In addition, I had fairly tight timescales, so wanted someone who could make the process quick and hassle free.”
Andrea, Contractor Mortgage Customer from Warminster
“I am a contractor, therefore require specialist mortgage advice. Adam has now concluded two mortgages for us (new mortgage then a contractor remortgage), and is currently arranging a buy-to-let mortgage for us. He also arranged our life insurance for us. We keep returning to him for some great reasons – he is always available, and ready to help. He provides great advice, and always ensures that he meets our requirements exactly. He is prepared to explain things in such a way that even a lummox like me can understand, and his level of service has remained consistently good over the last three years.”
Matt, Contractor Mortgage Customer from Southampton
“Adam’s advice on the different types of critical illness and life insurance were really useful. He also worked with us to decide the best combination of policies that would work with our existing policies to cover our needs. When doing this he happily tweaked quotes for us until we came out with an arrangement that was both affordable and would provide us with the level of cover we thought appropriate.”
Hannah and Steve, Protection Insurance Customers from Stamford
“Adam provided us with factual advice and also with options of which we were unaware. The advice on gifted equity was something we hadn’t heard about and this assisted us hugely to ensure repayments worked within our affordability. He provided us with a very personal service that made the journey from initial call, to mortgage offer and completion hassle free. We have already recommended Adam to someone and will continue to recommend his services in the future.”
Saul and Laura, Home Mover Mortgage Customers from Salisbury
“Mike and I collected the keys to our flat this weekend and we couldn’t be happier. It’s been a long time coming but we got there! We just wanted to say a MASSIVE thank you for everything you have done for us so far. We’ve really appreciated all the help, advice and reassurance you’ve given us all the way through this process. It’s really nice to have a friendly voice on the other end of the phone.”
Mike and Bethan, First Time Buyer Mortgage Customers from London
“Without question Adam found me a deal the estate agent’s broker couldn’t. He was very easy to contact whenever I needed him and he took time to explain the ins and outs of the Help to Buy equity loan scheme mortgage that he found me. I would rate him five out of five and will be back to use him when the time comes to remortgage or move.”
Chris, Help to Buy Mortgage Customer from Southampton
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