If you bought a new house and are looking for an improvement plan for your house, you should look for ways by which you can fund your project. This project may bring a lot of pressure on your pocket, so you should check for various funding options available for in the market.
- You can fund your project by paying upfront cash.
- Asking money from friends or relatives.
- Increasing your mortgage to get funds is also a good option.
- You can apply for a loan.
- You can also consider other options like using a credit card or unsecured personal loan.
Re-mortgaging can be one really good option to fund your project. You can easily maximise your borrowing money and look for a more profitable deal. For re-mortgaging you have to prove that you are capable of affording a larger mortgage. For that you need to have enough spare equity to increase the capital.
You can have a word with your lender about this deal. Mortgage broker can also help you with a good deal in the market.
When you have no plan to change your mortgage?
You can talk to your lender about the additional borrowing if you have no plan to change your mortgage. There can be many reasons why you do not want to change your mortgage. For instance, there will be increased rate on your borrowing, etc. or when you got caught up with the previous repayment charges.
You can also look for loan from another source that might help you with the previous repayments. Be careful about the high interest rates they impose on the loans.
Are lenders ready to change the mortgage rates for the home improvement projects?
The Loan to Value (LTV) is the portion of your property the mortgage represents. So the mortgage rates may vary according to the LTV.
Normally the lenders increase the LTV up to 90% by which they let the capital to increase for the home improvement project. This limit is set according to the scale of the home improvement project and it dependents upon the present value of the property and not the estimated value.
The value to LTV is directly related to the interest imposed. When deal ends, you can check for the rates and make your decision. Whereas, the mortgage options can be revised when there are proper value added to the improvements that will lead you to a better LTV.
You need to consider all available options and see which one will be most beneficial to you. If you are going for a larger project, it is very important that you look for every option and go for the one that will provide you the best deal.
The option you choose depends on the amount of money you required. Opting for methods like re-mortgage, loan, etc. will cost you a higher rate of interests. You can get conveyancing quotes online at conveyancing quotes Manchester. They are very helpful to determine the overall cost required for home improvement.