Can I remortgage for a loft extension?
Remortgaging for a loft extension can be a very smart move that can add serious value to your home. Read on to find out how you can do this through remortgaging!
Remortgaging to fund a loft extension can be a great way to improve the value of your home. Yet, while loads of people may not be keen on the idea of remortgaging, we’re going to show you how getting a loft extension can be a great move for you to improve your home’s value and why remortgaging might be the best way to finance your home extension. Read on to find out more!
Why remortgage for a loft extension?
If you feel like loft conversions or a loft extension is going to be pretty costly, then remortgaging can be a great way to remedy this! This is because you may be able to release some of the equity that you have amassed in your home over your mortgage term. Plus, you can also take advantage of the current, low interest rates!
If you're not tied in to a current mortgage deal then there is no better time to mortgage, release the funds for your loft extension &, at the same time secure a far more competitive mortgage rate.
If however you are currently tied in to your current deal then you may be able to get a further advance from your current lender or, alternatively raise a secured loan against your property. Although secured loans are slightly more expensive it does avoid you paying early repayment charges plus, when you come to the end of your current deal you casn remortgage for a larger amount & clear the secured loan at that point.
What we recommend here is that you speak to your lender and check whether they will charge you for remortgaging. If they do, then it may be wise to look at other options. Otherwise, the early repayment charge may nullify any savings you make through remortgaging!
The great thing about loft conversions is that they don’t usually require planning permission, as you’re improving an existing structure. Yes, there’s no need for a team of structural engineers to survey your home, but you may need to look at building regulations to make sure that your development is permitted. It’s a simple way to improve the value of your home – a house with more rooms usually fetches a higher price when it comes to selling! And if you’re not planning to move, a loft extension is ideal to make more room in your home.
Things to keep an eye out for:
While for many remortgaging to fund a loft extension might be a great option, it’s important for you to realise that this all going to be relative to your financial situation. Let’s take a look at an example. If you’re on a really good rate, such as a lifetime base rate tracker mortgage, then the likelihood is that remortgaging isn’t going to be saving you a lot more money. The best-case scenario here is that you’d be able to move to an interest-only mortgage which should provide you with the short-term savings to use on your loft extension.
What we recommend is that if you do want to improve your mortgage deal by remortgaging then you look at deals that are offered by lenders other than the one you have now. And before you start worrying over where to start then don’t panic, this is where we step in!
At Mortgages Online we can compare thousands of different deals that are offered by the hundreds of different lenders on the property market. The reason? To help find the best one for you! All you have to do is either contact us or check out some of the other articles on our site. It can help clarify a lot of questions you might have about remortgaging for a loft extension.