Tips for Remortgaging to Renovate
Step 1: Check how much equity you have in your house
If you need to borrow a specific amount for your project, you’ll need to have enough equity in your house. Ask yourself – has your home increased in value since you bought it? And, are you in the same financial circumstances since you took out the mortgage? If the answer is yes to both then you can usually remortgage for a higher loan value. If your home hasn’t increased significantly, however, remortgaging may not be possible.
Step 2: Do you have any early repayment charges
The ideal option is to remortgage at the end of your fixed term period. This is because switching deals mid-term can be expensive as you’ll probably have an Early Repayment Charge (ERC) to pay. Speak to your broker if you want to remortgage mid term as they will check how much early repayment charge you will need to may. In this circumstance, other options might cost you less, such as a Further Advance.
Step 3: 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.
Step 4: 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. Many lenders have lower rates available for people looking to make energy efficient improvements.
Step 5: Ensure your renovations increase the value of your home
As costs rise, so do the costs of extensions. Things like glazing have spiralled in price as have other building materials. 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 before commencing work about what sort of home improvements add value in your area.
Step 6: Don’t hang around
Make sure you are ready to go as soon as you get your additional borrowing. With inflation on the rise, the cost of the work will increase over time. We have clients who have struggled to complete their projects due to increasing costs.
If you have any questions after reading our Top Tips for Remortgaging to Renovate, we would be happy to help. You may also find our Guide to Remortgaging to Renovate useful.
Why choose Your Mortgage Expert?
At Your Mortgage Expert, we are experts in helping people to fund renovations and extensions. We will take the time to talk through your financial circumstances and advise on the option for you.
We are a family run mortgage broker based in Salisbury. But we can help you no matter where you live in the UK. Our highly experienced mortgage advice team understands the often complex process for getting a remortgage to renovate. We can help explain the whole process for you and will be by your side every step along the way.
On top of this, we can also put you in touch with our local business partners to help you with your project. We can recommend architects, solicitors, builders and more.
To find out more and get more tips for remortgaging to renovate, why not get in touch? Let’s start discussing how you can finance the renovation of your dreams. You can also look at our dedicated page for Renovations.
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Email Dan HarrisDan Harris - Mortgage Adviser
Dan Harris first started working in mortgages in 2004. Since then, he has helped lots of people remortagage. Dan has great attention to detail and will do the hard work to ensure you get the best recommendation. -
Email Dan AllenDan Allen - Mortgage Adviser
Dan Allen has worked in mortgages for over 10 years. He takes time to understand different lender criteria. His wealth of knowledge means he will know which lenders will work for you situation.