A remortgage is when you swap out your current mortgage product for a new one. People usually do it to try and get a better rate of interest.
A remortgage can also be known as a product transfer. The difference between a remortgage and a product transfer is that when you remortgage you take out a new mortgage with a different lender, whereas when you transfer products, you take out a new mortgage with your current lender.
There are many different reasons why someone may want to remortgage/transfer products. At the end of the day, it’s all down to what the homeowner wants.
Through a remortgage/product transfer you may be able to get a better rate of interest, consolidate your debts into your mortgage, raise capital for things such as home improvements or for something else.
In this mortgage guide, we are going to cover how you can remortgage/transfer products for home improvements.
How does it work?
Before remortgaging, you’ll have to calculate the intended costs for the home improvements being made. Depending on how you want to improve your home, the costs may not be quite as much as you expected them to be.
This is because when you remortgage to improve your home, the costs are incorporated into your mortgage. This means that your current monthly payments will include both your mortgage and your costs for home improvements.
Your overall payments may only increase by a small amount (e.g. as little as an extra £60 per month), depending on how big the home improvements are.
You must consider all of the costs that come with remortgaging for home improvements. Here are some factors that people miss:
- Architect’s plans and services
- Planning permission (Neighbours etc.)
- Building costs (Materials, Workers etc.)
- The VAT
- Building regulation inspections
Why would I want to remortgage for home improvements?
We’ve seen that the most popular reason for people wanting to remortgage for home improvements is to make more living space. This may be because the homeowners are growing/starting a family or just want more space in general.
The process is simple, can be carried out easily and also saves you from moving home in Hull. Rather than wading through the whole moving home process, if you already love your current home, why move? It often works out much cheaper to remortgage than to move home.
Here are various reasons why you may want to remortgage for home improvements:
- Kitchen conversion – If you want a new, modern kitchen, you can remortgage to incorporate the costs for one into your mortgage.
- Conservatory – Conservatories are a great place to sit and enjoy the view of your garden without even leaving your home. This is the most popular reason for people remortgaging for home improvements.
- Loft conversion – Lofts are also very popular amongst homeowners looking to remortgage for home improvements. A loft allows space for storage or for another bedroom.
- Garage – If you need more storage space or want more room for an extra car, a garage extension could be what you need.
- Garden extension – Many people don’t realise that it’s possible to extend their garden through remortgaging. If you want a change of scenery in your back garden, this option could be perfect for you!
Remortgage for home improvements summary
If you are thinking of taking the remortgage for home improvements route, feel free to contact us, we would be more than happy to help. Our team are experts and will give you remortgage advice in Hull exactly when you need it!
Our hardworking team are available 7 days a week so that you can get in touch at a time that best suits you. If you also want to remortgage for another reason, we are still able to help you!
Date Last Edited: 11/13/2024
