UK homeowners are staying put for nearly two decades, choosing to home-improve rather than move, according to a recent report from Barclays. But what is the best way to pay for these renovations? Erin Gallacher discusses.
According to the 2018 Barclays Homes Improvement Report, Brits are staying in their property for an average of 19 years, with 54% of homeowners saying they would prefer to improve their home rather than move.
Whether you’re looking to add value to your property or make improvements to reflect your personal taste, you’ll need to find the money to make the changes. If you don’t want to dip into your savings, there are a couple of ways of borrowing which can work out much more cost-effective than taking out a personal loan.
1. Further advance
This option involves borrowing more from your current mortgage lender. It’s a popular route if you’re tied into Early Repayment Charges or if you’re already on a really competitive RATE. Essentially, your lender lets you borrow more under a new arrangement, usually at a different interest rate, leaving your existing mortgage intact and untouched.
On average it takes around four weeks for a further advance to complete, which means there may still be sufficient time to get the works done and paid for before Christmas!
2. Remortgage to raise capital
Depending on your circumstances, it may be cheaper to remortgage with a different lender, especially if you aren’t tied into ERCs on your current mortgage. You might be surprised to know that on numerous occasions we have been able to raise capital AND save our customers money on their monthly repayments!
>> Couple raise £10k and reduce mortgage payments by £200 >>
Remortgaging takes slightly longer to complete than a further advance. On average you are looking at six to eight weeks, but if time is of the essence we can factor that into your requirements and approach a lender working to a quicker turnaround time.
You can get an idea on current rates using our residential rate finder.
In both scenarios how much you can borrow will depend on how much equity you have in your property.
Which is the best option for you?
That’s where we come in! We’ll find out what your current lender can offer and search the market for you to find the most appropriate solution for your requirements. We’ll certainly save you time and we’ll try to save you money too. What’s more, we’ll do all of the research and present you with the best options totally free of charge and without obligation. So, unless you decide to remortgage or take out a further advance you won’t pay a penny!
If this service is of interest, please do get in touch.
When chatting through the options, you’ll need to provide us with:
- Name of your current mortgage lender
- Approximate amount outstanding on your mortgage
- The mortgage rate you are paying now
- Details of any ERCs
- Approximate value of your home
- Your annual income
Remember, employed or self-employed, contractor – it doesn’t matter – we’re pretty good at finding solutions for everyone.
We look forward to helping you finance your home improvements!
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