Remortgage for House Extension
If you’re keen to extend your existing property, remortgaging can be a good way to use the value accumulated in your property in order to do so. A remortgage for a house extension is a type of capital raising remortgage – that is, it’s a remortgage designed with the intention of increasing your borrowing in order to raise cash.
Whether you can raise the finances necessary for a house extension by remortgaging will depend upon several factors, but it might be especially relevant for you if you have owned the property for a few years. This is due to the fact that it may now be worth a considerable sum more than you initially paid for it, and as long as you’ve been making repayments on time, you’ll have a greater stake in the equity of the property you’ll have a more noteworthy stake in the value of the property. Remortgaging in these circumstances could help you to raise money for pricey projects, such as home extensions, without obliging you to move to another property. Instead you can improve on the property you already own, and potentially add value to it if you wish to sell in the future.
If it’s the case that you are no longer happy with the arrangement offered by your current mortgage supplier, you may need to consider a remortgage deal from another lender, which can be attained by switching your home loan to another provider on new terms.
What to consider when picking a capital raising remortgage for a house extension
Remember that a capital raising remortgage for a house extension may well come with fees and charges, for example:
Arrangement and administrator charges – regardless of whether you are remortgaging with the same supplier, you may in any case need to pay a product fee for the new mortgage
Valuation and legal expenses – lenders will need a new estimate of the current value of your property in order to calculate its current market value before they consent to a remortgage.
Get the best house extension remortgage offers
To discover the best remortgages for house extension, contact us today – our completely qualified mortgage advisers can help you get the best capital raising remortgage deals. Call today on 0117 332 3389 to get expert assistance with your remortgage.
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