When considering remortgaging in Cambridge, you’ll encounter a range of options. You might simply be seeking a new product for your property, or you could be interested in remortgaging to access equity, consolidate debt within your mortgage, or fund home improvements.
Remortgaging for home improvements is a popular option among property owners who would prefer to invest in their current home rather than move home. The costs of moving home often outweigh the costs of investing in your current home, hence making the idea of remortgaging for home improvements more appealing.
What is remortgaging for home improvements?
When you remortgage for home improvements, you are simply increasing your mortgage loan to incorporate the costs of the improvements into your mortgage.
An example would be that you want to turn your spare room into a home office and rather than forking money out of your savings, you add the costs of these improvements into your mortgage. Your mortgage will increase by a small amount, meaning that you will have to pay slightly more on your monthly repayments.
Depending on how much work you have carried out on the property, will factor into how much you will have to pay back each month.
Why do people remortgage in Cambridge for home improvements?
There are lots of reasons why someone may want to remortgage for home improvements in Cambridge. Your property may be showing shows signs of ageing and could need improving in areas, or your family could have grown, requiring you to create more living space. Alternatively, you might want to transform your garage into a gym or convert a bedroom into a home office.
Everyone’s situation and motive is different for remortgaging in Cambridge and investing in home improvements. Some people may even want to invest in a bar in their back garden.
What are the costs of remortgaging for home improvements?
Before you can work out how much you are going to be paying back each month for your home improvements, the mortgage lender will need you to provide a quote of the costs of the work being carried out. This way, they can establish how much extra you need to borrow and how much extra you will need to be paying back each month.
As a mortgage broker in Cambridge, we can help you work out these costs and provide an estimate of how much you will be paying back each month.
Can I remortgage for home improvements on a buy to let in Cambridge?
For those that own a buy to let property in Cambridge, you may have the option to remortgage for home improvements. If want to improve your property without releasing equity from the property, you can incorporate some of the costs of the works into your buy to let mortgage.
Of course, this is not for everyone and some landlords will find that they can fund the improvements themselves. It is also down to personal preference and what is within their budget.
Are there any alternatives to a remortgage for home improvements in Cambridge?
If you do not want to incorporate the costs of the home improvements into your property, you could perhaps look into taking out a personal loan. This, however, could become more costly than home improvements. When you remortgage for home improvements, you will pay off the costs of the improvements with your mortgage, over the length of your mortgage term.
Personal loans also come with high interest rates, meaning that you will end up paying back more than what you originally took out for your home improvements. Personal loans also typically come with a fixed repayment period. This means you’ll need to repay the loan amount, along with the interest, within a predetermined timeframe. The repayment period can range from a few months to several years, depending on the terms of the loan.
Free Remortgage Review in Cambridge
Our remortgage advisors in Cambridge can look at your remortgage options with you and help determine which is the best route for you to take. We will look at your current personal and financial situation to make sure that you are doing what is best for you.
Getting remortgage advice in Cambridge has never been easier! You can easily book your free mortgage appointment online by using our online appointment booker. Choose a date and time that best suits you and speak with a mortgage advisor in Cambridge today.
Date Last Edited: December 6, 2023
