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Adding value to your property.
One very popular reason for people seeking a remortgage is to add value to their property by carrying out home improvements. Obtaining a loan in order to carry out improvements is increasingly hard in the current financial climate, with many being secured against property and others having high interest rates. Remortgaging can be a very beneficial route for many if the right advice is sought.
When you are renovating your home in order to add value to your property you need to make sure that you see a return on your investment.
Here are our top tips!
Renovations such as decorating do not add any significant value to your property.
Creating additional inside space such as bigger bedrooms, kitchen, lounge or even adding additional rooms can add considerable value to your home.
Conservatories are a commonly quick, easy and relatively cheap way in which to increase the value of your home. Remember you need to seek the relevant planning permission.
Installing double glazed windows and doors probably won’t add much value to your home; however they can reduce energy bills and improve security which could make your property easier to sell.
Modern and stylish kitchens and bathrooms are very appealing and can add value to your property.
If in doubt, look at similar houses for sale in your area and see what sells.
Remember to always seek relevant advice and assistance from qualified experts where necessary.
Debt Consolidation
Debt consolidation is a very popular way to sort out your financial worries. Remortgaging and releasing equity from your home could be one way in which you do this.
Due to the current economic climate, loans aren’t being offered at the same rate they used to be. This means that people who are looking to consolidate their existing loans and credit cards don’t have the same options available to them they did a few years ago.
Depending on your circumstances, including the amount of equity you have in your property, credit history and debt level, releasing the equity from you home by remortgaging could be a simple and easy way of repaying your debts.
Here are our top tips of what to look out for.
- Work out your income, expenditure and minimum repayments and see how long it will take you to pay off your loans at the current rate. Is it months or years?
- Calculate the interest that is being added onto your accounts. If this is high then it will take you a lot longer than you think to repay that loan. If you aren’t paying any interest or charges onto the debt then it will be better for you to keep up with the repayments.
Renovating your home Do’s and Don’ts
One of the main reasons many people seek a remortgage is due to plans of home renovation. We all dream of making a few changes here and there, never being completely satisfied with our homes.
When renovating your home it is important to make sure you don’t fall into the common pitfalls with our handy do’s and don’ts guide.
Do:
*Shop around if using a builder or tradesman and make sure that you get a few quotations before you make your decision.
*Use people that have been recommended to you, we’ve all seen the television programme Cowboy Builders!
*Make a plan of what you want to do and how much it is going to cost and stick to it.
Don’t:
*Be tempted to cut corners, if you are going to do it, do it properly.
*Get carried away, use your original plan and make sure you stick to it.
*Try and do the work yourself if it is out of your comfort zone. It can incur more costs if someone has to come and fix the problems.
What is a Remortgage?
Remortgaging is where you replace an existing mortgage with a new one, without moving home. This could be with the same lender and you just change the product or it could be with a different lender all together.
If you have equity in your property then it may be possible to release some of this and help relieve any financial strain that you may have from other debts or allow you to carry out some home improvements.