The most efficient way of borrowing is to re-mortgage if you own your own home or another property. Re-mortgaging is typically less expensive than bridging finance, however you must-have adequate income to show you really can afford extra repayments.
Just how much you can easily borrow varies according to:
- Your major home’s equity (its current value minus what’s owed on the existing mortgage)
- Your credit history
- Simply how much the proposed enhancement may enhance the property’s value.
Re-mortgaging could be the possibility to get a cheaper deal on the loan that is existing as a brand new one. The drawback is the arrangement charge, that can be a few thousands of pounds.
Make certain you consider any charges and penalties for repaying the advance if you reduce steadily the loan or early sell the property.
2. A Property Improvement Loan
These can either be unsecured or secured:
- Secured personal loans can be used for larger more projects that are expensive
- Short term loans can be used for smaller projects and repaid over many years, typically at a hard and fast interest rate and often as much as ?25,000.
A secured home improvement loan is effectively a second mortgage, so it involves passing the same stringent checks now made on first-time mortgage applicants regarding for existing homeowners
- Regular income that is verifiable
- A credit history that is strong.