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Remortgage for home improvement

You might be planning to redesign or redecorate your own home but know that money is tight. The best option would be to remortgage for home improvements. It is much better than any other kind of unsecured loan. Interest rates would be higher than a normal mortgage but lesser than an unsecured loan.

You can remortgage with your same lender or opt for second charge remortgage, to do this you will need to have sufficient equity in your property.

Before remortgaging, whatever the purpose you must have completed the initial product term. There will also be standard costs such as valuation fees but the overall costs are normally much lower than other options.

All the processes and necessary documents are the same as a first-time mortgage process. You will be required to provide proof of income, property documents and additionally to show an estimation of the cost of the improvements. Of foremost importance though is the amount of equity available in your property as this will be evaluated to secure the remortgage amount.

We have a large network of lenders who can provide you with highly competitive market rates and we will do all that is needed to ensure that the process is easy and runs smoothly.

Remortgaging to build a house.

If you have enough equity in your home you may be able to remortgage to build a new house. If you cannot raise enough money on your existing property to pay to build a new house outright, you could use it as a deposit and get a loan to help to you with the build costs.

Are you looking to make home improvements?

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Frequently Ask Questions

The’ term of the mortgage’ is the total time period of the length of the mortgage. It means it is the time agreed to repay all the funds you borrowed along with the interest amount. The average term for repaying a mortgage is 25 years but you can choose from 15 to 40 years. The younger you are the higher term you can choose, the older you are the lesser the term will be. A higher term means low monthly repayments but a higher interest value. The lesser term means higher monthly payments and a lower interest value.

If you are self-employed then getting a loan would be harder, but it’s not an impossible task. Agreed it was easy to borrow money in previous years but now it is quite a cumbersome process. If you need a loan and you are a businessman, freelancer or self-employed then you need to show proof that your income is stable.  Lenders will want to see your tax returns, bank account statements as well as an income report along with any kind of cash deposits ; if you have these then your rating will be higher than self-employed borrowers without such evidence.

In order to remortgage your current property you must have paid off some of the original loan, for example if you own a house and its value is £100k and you made an initial payment of £10K and took a loan for £90k, but a couple of years later, you have only repaid £2k and the value of your house has increased by £1k this means that the value of the house is £110k and your pending mortgage is £70k. At this point the equity value is the difference between the value of your home and a pending mortgage which in the case of the above example will be £40k.

 

So, you can remortgage your home to get the additional £40k and if remortgaging to release the equity, you can remortgage part of the equity as well, which means you can borrow £20k or £30k of £40k

You may have paid more than half of the mortgage amount on your home and might want to buy a new house and are considering a remortgage to do this; before this can happen we need to confirm whether you are remortgaging to buy a house for your extended family or kids or if you are buying as an investment or to rent out to tenants. If you want it for your kids or extended family then you can remortgage your current property to pay the up-front payment or to pay some initial expenses.

However, if you are planning to buy for investment purposes and you want to let it out to tenants than you can’t remortgage your residential property as this would be considered a commercial property; a residential property cannot be remortgaged for commercial purposes.

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