Use Equity Release To Power Forward With Your Home Improvement Grand Designs
- By Howard Ogollegos
- Published 10/27/2011
- Real Estate
- Unrated
Since the credit crunch it has become more and more difficult to obtain mortgage finance. The days of 100 per cent plus mortgages are gone for good and it's even difficult to obtain a simple remortgage to fund home improvements.
A remortgage was the simple way to fund home improvements prior to the global financial crisis, but with banks changing criteria over the last few years it has been harder to obtain cash for redecoration or for other purposes such as a dream holiday or to consolidate debts.
One way that people approaching retirement can raise cash is to consider a lifetime mortgage, or 'equity release' scheme. These schemes allow you to withdraw some of the equity in your home in order to fund home improvements or to pay for larger one off purchases such as a new car.
In return for a share of the proceeds from the eventual sale of your home (normally after your death) a lender will advance part of your home's value. The cash ordinarily comes in either a lump sum or as a monthly payment. It means that you can remain in your home but still benefit from the equity you have built up, although these remortgage deals are typically only available to applicants aged 60 or over.
Once you have received the money you can use it to pay for a range of improvements. This may be a new kitchen or bathroom, an extension or conservatory or simply installing a new central heating system or boiler.
Once you reach retirement age, you may find that you have more ti
me available to do the things that you'd been putting off for various reasons, such as improving your home and doing repairs on the property. A remortgage on your equity release mortgage can help you to fund such ventures.
Your property could be improved by simple jobs such as new windows and doors or new guttering or drainpipes. Home improvements do not always have to be significant or require structural alterations.
Creating new features such as carpeting or double-glazing, maybe adding a brand new front door or building a fence/brick wall would enhance the value of your home. Be mindful that home improvements don't always have to be major structural jobs.
Many people who discover themselves in the predicament described above consider equity release for home improvements in these circumstances - remortgage rates vary. Accessing equity release allows the homeowner to have the works they require completed out by professionals. The equity release will enable the retired homeowner to have no monthly repayments to worry about. This means it is not a drain on the diminished income that the homeowner will now have during retirement.
As with any significant financial commitment it is sensible to seek the advice of a professional mortgage broker or financial advisor before committing to an equity release scheme. Qualified advisors can outline the various options open to you as well as searching the market to find the best remortgage rates or equity release deals. And, a broker may be able to establish whether you are eligible for any government funding which can help pay for your home improvements.
A remortgage was the simple way to fund home improvements prior to the global financial crisis, but with banks changing criteria over the last few years it has been harder to obtain cash for redecoration or for other purposes such as a dream holiday or to consolidate debts.
One way that people approaching retirement can raise cash is to consider a lifetime mortgage, or 'equity release' scheme. These schemes allow you to withdraw some of the equity in your home in order to fund home improvements or to pay for larger one off purchases such as a new car.
In return for a share of the proceeds from the eventual sale of your home (normally after your death) a lender will advance part of your home's value. The cash ordinarily comes in either a lump sum or as a monthly payment. It means that you can remain in your home but still benefit from the equity you have built up, although these remortgage deals are typically only available to applicants aged 60 or over.
Once you have received the money you can use it to pay for a range of improvements. This may be a new kitchen or bathroom, an extension or conservatory or simply installing a new central heating system or boiler.
Once you reach retirement age, you may find that you have more ti
Your property could be improved by simple jobs such as new windows and doors or new guttering or drainpipes. Home improvements do not always have to be significant or require structural alterations.
Creating new features such as carpeting or double-glazing, maybe adding a brand new front door or building a fence/brick wall would enhance the value of your home. Be mindful that home improvements don't always have to be major structural jobs.
Many people who discover themselves in the predicament described above consider equity release for home improvements in these circumstances - remortgage rates vary. Accessing equity release allows the homeowner to have the works they require completed out by professionals. The equity release will enable the retired homeowner to have no monthly repayments to worry about. This means it is not a drain on the diminished income that the homeowner will now have during retirement.
As with any significant financial commitment it is sensible to seek the advice of a professional mortgage broker or financial advisor before committing to an equity release scheme. Qualified advisors can outline the various options open to you as well as searching the market to find the best remortgage rates or equity release deals. And, a broker may be able to establish whether you are eligible for any government funding which can help pay for your home improvements.
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.
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