Can I borrow towards my residence to pay for a refurbishment?

In these instances of costly mortgages, many individuals are selecting to improve their present home moderately than transfer. In his newest Q&A, Joe Capon of The Mortgage Bubble affords recommendation to a reader on easy methods to fund residence enhancements

The Query

Now we have lived in our residence for 10 years and have simply welcomed our third little one to the household. We have to develop the home to suit our rising brood, so we’re drawing up plans for a side-extension.

It’s estimated to value round £70k together with VAT however I’m conscious it may find yourself being extra.

We’re at present on a fixed-rate mortgage with HSBC with two years left to run and the speed is admittedly low (compared to present charges) so we don’t wish to remortgage.

Is there a manner we will borrow towards the house to fund the renovation? A good friend talked about we may get an ‘advance’? Would this be an choice?

Joe’s Reply

Elevating additional funds towards your property is an choice. I might have a look at one in every of both two choices:

Possibility one: Apply for an additional advance with HSBC. This won’t require your present mortgage to be repaid and you’ll maintain your helpful rate of interest. It should additionally keep away from you having to pay any early repayment charges.

Possibility two: If this isn’t viable with HSBC, you may have a look at taking out a secured mortgage – also called a second cost mortgage. This might be with one other lender. Traditionally, second cost mortgages include extra beneficiant affordability standards, nevertheless additionally they have larger rates of interest and arrange prices.

Getting recommendation from a mortgage adviser on this is able to be very helpful.

Meet our skilled

Introducing Joe Capon of The Mortgage Bubble, who is able to reply your questions…

Joe Capon has greater than 10 years’ expertise within the mortgage business. He arrange The Mortgage Bubble in 2021 and it’s now a multi-award-winning mortgage agency, which strives to ship the most effective mortgage recommendation to its shoppers which meets their wants now and likewise sooner or later. When you have a query for Joe e mail our editor and she or he’ll go it on to him – kate.saines@emap.com