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- Equity Release Is Your Best Financial Tool to Fund Home Improvements and Increase Your Homes Value
Equity Release Is Your Best Financial Tool to Fund Home Improvements and Increase Your Homes Value
- By Howard Ogollegos
- Published 10/26/2011
- Real Estate
- Unrated
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.
A remortgage allows you to benefit from one of a great range of remortgage deals on your main mortgage as well as borrowing additional funds to improve your home. Even in the current market there is a wide range of remortgage deals available including offset products, fixed rate remortgage deals and discounted/tracker rate mortgages.
Banks have begun to rediscover their appetite for remortgage lending and remortgage rates are currently very attractive. However, with so many rates to choose from it is often wise to seek advice from a mortgage broker or other professional. Everyone's circumstances are different and a broker can help you find the right remortgage deal for you. With the market changing all the time, benefiting from professional advice is recommended.
For those over the age of 50, equity release mortgages are available whereby you sell a proportion of your home to the lender, so only the interest is payable and this is only due for repayment on death or sale of the property. Remortgage deals are available for these types of mortgages too, and can allow you to pay for home improvements.
The most popular way of adding to the value of any property is by incorporating a new fitted kitchen that suits the property
. Another method is to add a bathroom or even an extension such as a conservatory or a loft conversion. Landscaping the garden of your home can seriously add to the value of a home and have a positive effect on its market price.
All of these features can make your home more attractive to house hunters, especially if they are aware of the fact that the improvements you have made will saving them time and expense and hassle.
Your home might just benefit from some general redecorating. Changes don't necessarily have to be architectural and they can simply include aesthetic changes such as new furniture, soft furnishings and carpets. Revamping the internal look of the house is a smart and cost effective way to give your home a more modern vibe, and it can be done by decorating rooms in airy but neutral colours and by adding subtle accent colours.
As part of any remortgage deal you will have to have your home valued by a qualified surveyor. You will also have to complete a detailed remortgage application form and you are likely to have to provide documentation including identification and proof of your earnings. There may also be costs involved in the remortgage process, depending on the lender concerned.
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.
Remortgaging has other benefits too, such as being able to consolidate unsecured debts, and to obtain lower interest rates, but as mentioned it is a good idea to seek help from a mortgage professional before signing up for anything.
A remortgage allows you to benefit from one of a great range of remortgage deals on your main mortgage as well as borrowing additional funds to improve your home. Even in the current market there is a wide range of remortgage deals available including offset products, fixed rate remortgage deals and discounted/tracker rate mortgages.
Banks have begun to rediscover their appetite for remortgage lending and remortgage rates are currently very attractive. However, with so many rates to choose from it is often wise to seek advice from a mortgage broker or other professional. Everyone's circumstances are different and a broker can help you find the right remortgage deal for you. With the market changing all the time, benefiting from professional advice is recommended.
For those over the age of 50, equity release mortgages are available whereby you sell a proportion of your home to the lender, so only the interest is payable and this is only due for repayment on death or sale of the property. Remortgage deals are available for these types of mortgages too, and can allow you to pay for home improvements.
The most popular way of adding to the value of any property is by incorporating a new fitted kitchen that suits the property
All of these features can make your home more attractive to house hunters, especially if they are aware of the fact that the improvements you have made will saving them time and expense and hassle.
Your home might just benefit from some general redecorating. Changes don't necessarily have to be architectural and they can simply include aesthetic changes such as new furniture, soft furnishings and carpets. Revamping the internal look of the house is a smart and cost effective way to give your home a more modern vibe, and it can be done by decorating rooms in airy but neutral colours and by adding subtle accent colours.
As part of any remortgage deal you will have to have your home valued by a qualified surveyor. You will also have to complete a detailed remortgage application form and you are likely to have to provide documentation including identification and proof of your earnings. There may also be costs involved in the remortgage process, depending on the lender concerned.
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.
Remortgaging has other benefits too, such as being able to consolidate unsecured debts, and to obtain lower interest rates, but as mentioned it is a good idea to seek help from a mortgage professional before signing up for anything.
Howard Ogollegos
Howard O'Gollegos writes for Just Commercial Mortgages.com the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news.
View all articles by Howard Ogollegos