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How to fund a home reno

Whether you're dreaming of a modern kitchen, a luxurious bathroom, or expanding your living space, funding your home renovation project can be a challenge. However, there are two options worth considering: applying for a further advance or applying for a remortgage.

Further advance

If you're happy with your current mortgage, applying for a further advance may be an ideal solution. A further advance allows you to borrow more funds from your lender based on the equity you've built up in your home. This option allows you to keep your current mortgage intact while accessing the money you need. It's important to note that the interest rate and payment terms for the further advance may differ from your original mortgage, so carefully review the terms before proceeding.

Remortgage

A remortgage involves switching your existing mortgage to a new lender or changing to a new product with your current lender. By remortgaging, you can release equity in your home and use the additional funds to finance your renovation project. This option allows you to potentially secure a better interest rate, extend the repayment period, or access a higher loan amount. However, keep in mind that there may be added fees and costs with a remortgage, so it's essential to assess the full impact before making a decision.

Regardless of whether you choose a further advance or a remortgage, it's crucial to consider the following:

Get multiple quotes

Before finalising your plans, obtain several quotes from reputable tradespeople. Comparing quotes will give you a better understanding of the costs and help you make an informed decision. Remember, it's not just about finding the lowest price; quality and reliability should also be considered.

Check mortgage terms

Before looking at any financing option, carefully review the terms and conditions of your current mortgage. Some mortgages have specific clauses on borrowing for home improvements. Ensure that your mortgage allows for further advances for renovations. If in doubt, consult your mortgage lender or seek advice from an adviser.

Budget wisely

Renovations can often exceed initial cost estimates, so it's crucial to establish a realistic budget and include a back up fund for unexpected expenses. Plan your finances carefully to ensure you can comfortably repay the additional borrowing.

Starting a home project is an exciting journey, but it's essential to explore your finance options wisely. Whether through a further advance or remortgage, these methods can provide the funds needed to turn your dreams into reality. Remember to gather multiple quotes, check your mortgage terms, and create a proper budget. With proper planning and careful thought, you can unlock the true potential of your home and create a space you'll love for years to come.

SPEAK TO AN ADVISER

Think carefully about securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. You may be charged a fee for mortgage advice.

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Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, PLEASE ASK FOR A PERSONALISED ILLUSTRATION. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT ADVICE.


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