Firstly, what is a remortgage? Remortgaging is simply switching to a new mortgage product. This can also be known as a product transfer.
The difference between a remortgage and a product transfer is that when you remortgage, you change products and lenders, whereas when you complete a product transfer, you change mortgage products but stick with the same lender.
The reasons for people wanting to remortgage can be different, it all depends on what the homeowner wants. They may want to look for a better rate of interest, consolidate their debts, or raise capital for things such as remortgaging for home improvements in Essex.
In this article, we are going to focus on remortgaging/transferring products for home improvements.
How does remortgaging for home improvements in Essex work?
Before you remortgage, you will have to work out the estimated costs for the home improvements. Home improvements could be anywhere from extensions to conversions, so depending on how you want to improve your home, the costs may increase.
Once you have worked out your estimated costs, they will be incorporated into your mortgage. This will slightly increase your overall monthly payments as you are now paying off your mortgage as well as your home improvements. In some cases, your payments may barely increase. Again, this all depends on the home improvements being carried out. As a Mortgage Broker in Essex, we’ve seen some customers go up by an extra £50, to an extra £200.
Estimated costs include:
- Architect’s plans and services
- Planning permission (Neighbours etc.)
- Building costs (Materials, Workers etc.)
- The VAT
- Building regulation inspections
We would also advise that you have some spare savings aside from the remortgage, as if things go wrong or the costs don’t quite add up, you may have to cover them.
Why would I want to remortgage for home improvements in Essex?
The most common reason for people remortgaging for home improvements is to make more space. Whether it’s because they’re starting a family or just want a bit of extra room within their home, the whole process is easily done and it also saves you moving home in Essex.
Rather than going through the whole moving process, if you already love the home that you live in… why move? It often works out that it’s much cheaper to remain inside your current home too!
You can remortgage for various different types of home improvements, some include:
- Kitchen conversion – If you are long overdue for a new kitchen, it may be time to remortgage for a new kitchen. In fact, many people choose to go down this route over most home improvement options.
- Conservatory – If you need a place that gets you out of the house, but not quite of the house, a conservatory could be the right extension for you. A conservatory provides a nice quiet place to relax at the back of a house with a lovely garden view.
- Loft conversion – Lofts are very popular amongst most homeowners, in fact, it’s rare to find a house that doesn’t have one nowadays. In particular, loft conversions are loved by people who have families or are looking to start one.
- Garage – A garage provides an extra safe place of storage for a car, household items… or it can even be converted into a man cave or a games room if you’d like!
- Garden extension – Many people don’t realise that they can extend their garden through remortgaging for home improvements. If you feel like you want a change of scenery in your back garden, you are able to do so by a remortgage!
Remortgage for home improvements summary
If you are thinking of improving your home and want to go down this route, feel free to get in touch with our team for remortgage advice in Essex. Whether it’s because you need more room or just because you want to modernise your home, there is always a good reason to remortgage.
Our team works 7 days a week, so make sure to get in touch whenever you want to have a chat about your remortgage options. There are other reasons to remortgage, so if you want to go down another route, we would be more than happy to help with that too.
Date Last Edited: September 30, 2024
