Lawyers for Remortgaging for Home Improvements
Solicitors for Home Improvement Remortgages
Many homeowners release equity in their property by remortgaging to carry out and pay for home improvements without having to pay using their own money.
The funds are used to make improvements to the property and ultimately increase its value.
Remortgaging is a big decision and it can have a significant impact on a homeowner’s finances.
An expert conveyancing solicitor can advise you on your options and guide you through the process, as well as handle the technical aspects of the transaction.
How Does Remortgaging to Borrow More Work?
When you apply for a mortgage you have the option to fix the interest rate you are charged for an initial period, usually between 2-5 years.
Once the fixed term is up, you will need to either reapply to your existing lender to fix a new interest rate and term or remortgage with a new lender who may be offering more favourable rates and terms.
When switching to a different mortgage deal, it is possible to apply for an additional sum, which could be used to fund home improvements.
What Factors Govern Whether You Will Be Able to Borrow an Extra Sum?
Three key factors will be taken into consideration:
- Mortgage lenders will take your current financial circumstances into account, such as your income, job stability, and any other debts. They will also conduct thorough credit checks before offering you a remortgage deal in line with your current credit score.
- The amount of equity you own in your house. For example, if you originally took out a 90% mortgage but have been making monthly repayments for the last few years, you will now own more than your original 10% and will have a much lower mortgage balance, which would make it easier to borrow more.
- How much your home has increased in value since your initial mortgage application? If the value of your property has increased since you bought it, you will have extra borrowing power when you come to remortgage – a great situation to find yourself in!
Is It Cheaper to Remortgage If I Want to Make Home Improvements?
Remortgaging to make home improvements could be a cheaper alternative to taking out a personal loan or using a credit card, but this depends on mortgage interest rates.
The best rates on personal loans are generally around 3% to 4%, so if you can find a remortgage rate lower than this then it would be a cheaper option.
You would also be able to repay the amount borrowed over the term of your mortgage, rather than the three or five-year terms common on personal loans.
How Long Does Remortgaging Take?
Unfortunately, there is no fixed timescale for a remortgage, this will very much depend on the length of time it takes your lender to issue a new offer.
However, it is worth starting the process at least three months before the end of your current mortgage deal so you have plenty of time to find a new deal.
Once the mortgage offer has been issued, and provided there are no complex conditions to comply with, completion can usually take place within 1-2 weeks (if the property is freehold).
Gathering your required documents efficiently and staying in regular contact with your mortgage broker, lender, and conveyancer are all ways in which you can ensure that the process runs smoothly and in a timely manner.
What Does a Solicitor Do When You Remortgage?
A conveyancing solicitor oversees the entire remortgaging transaction which includes:
- Requesting the title deeds and mortgage redemption statement from your current lender
- Checking the terms of your new offer and flagging anything important
- Carrying out the required checks and searches
- Receiving the funds from your new lender and ensuring your current mortgage is paid off on time
- Amending and registering your title deeds with the Land Registry to reflect the change of lender
Get in Contact with Our Expert Team of Lawyers
We’re a full-service conveyancing practice with teams covering every conceivable aspect of property law so if you need support with remortgaging, equity transfers, or any other conveyancing issue, we can help.
To chat with one of our expert property lawyers, you can call us at 0333 433 0275, email us at hello@homepropertylaw.co.uk, or fill in our contact form.
