A Remortgage Can Give You a Large Financial Warchest For Value Adding Home Improvements by Timothy Frodsham

If you’re looking for a way to maximise the value of your home, undertaking home improvements is a great idea. However, obtaining the finance to fund refurbishment work hasn’t been as easy since the ‘credit crunch’ of 2008. Switching your home loan from one lender to another and raising additional cash has become more difficult since the well publicised problems that contributed to the global financial crisis.

You can take out a remortgage with a new lender or remain with your existing one, and with a wide range of remortgage deals available, you’ll be spoilt for choice. You are able to fix your interest rate, obtain a discount or even take payment holidays and make overpayments depending on the type of remortgage product that you obtain.

At the present moment in time, Remortgage rates are at the lowest levels they have ever been at. Property owners who are not sure about which product to access should contact a remortgage specialist for more detailed advice, their expertise in helping many different homeowners, all with unique and varying needs gives them the knowledge needed to better assist you. A remortgage specialist will help you to locate the right product for your needs. Many property owners might not r qualify for remortgage deals owing to the huge shift in lending practises since the crisis so taking advice is essential.

Equity Release remortgage rates are hugely variable. A standard fixed rate is 7.84% but this includes a lump sum and no inheritance guarantee. A standard flexible option is normally priced att 7.14% but includes inheritance guarantees. For the purposes of this article we have looked at Aviva’s rates, so other lenders might offer differing deals.

Refitting a bathroom or kitchen are two of the most popular ways of increasing a property’s value. Alternatives include converting your loft or garage, building an extension or conservatory or landscaping your garden.

Making changes to the garden such as having it landscaped professionally can also help to add value and to make the property more attractive to potential buyers when you come to sell in the future.

You can also make your home more attractive by simple internal redecoration. New furnishings and curtains can improve the look of your home whilst repainting in a neutral colour can enhance the natural light and make the property look cleaner and more modern.

One thing the bear a mind when remortgaging is that the property would need to be re-valued by a surveyor so that the lender can work out how much ‘equity’ is available. This will determine how much additional funding you can borrow.

There is sometimes some government help that can be accessed. Energy Efficiency and Housing Renovation money can sometimes be used to make your home more environmentally sound; this depends on the type of property owned. It is worth asking a specialist regarding the necessary criteria and eligibility to access this type of funding.

Even though remortgages have been tougher to obtain over the last few years they are many people’s preferred option when they want to raise funds for home improvements. Alternatives include approaching your existing lender for a ‘home improvement loan’ secured on your property although you may not be offered a preferential interest rate for this. You can also consider a secured or homeowner loan, although you will generally find that the interest rates on this type of ‘second charge’ borrowing are higher than a remortgage.

Timothy Frodsham writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.

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