With spring just around the corner, many of us are beginning to think about fresh starts. The longer days and warmer weather can be the perfect backdrop for tackling those long-planned home improvement projects. Whether you’re dreaming of a sleek new kitchen, a spacious extension, or simply updating tired spaces, now could be a smart time to consider raising capital through your mortgage to fund these changes.
Why Use Your Mortgage for Home Improvements?
Raising capital from your mortgage can often be a more cost-effective way to finance home improvements than alternatives like personal loans or credit cards. Mortgage interest rates are typically lower, which can make borrowing less expensive over the long term.
Additionally, well-planned renovations can add value to your home. Investing in key areas such as kitchens, bathrooms, or energy-efficient upgrades may not only enhance your living experience but can also make your property more attractive to future buyers.
How Does It Work?
You can unlock funds through your mortgage in two key ways:
- Remortgaging: If you’re nearing the end of your existing mortgage deal, or even if you’re mid-term, you may be able to remortgage to borrow additional funds. This involves increasing your mortgage amount to release equity from your home.
- Further Advance: If you don’t want to remortgage, you could explore a further advance with your current lender. This allows you to borrow extra money on top of your current mortgage.
Both options depend on factors such as your home’s value, your outstanding mortgage balance, and your financial circumstances. Lenders will assess your ability to repay, so it’s essential to check your affordability before proceeding.
Why Now Is a Good Time to Act
Spring is a time of renewal, and it brings several advantages for homeowners considering renovations:
- Weather-Friendly Conditions: The milder weather ahead is ideal for construction projects, enabling you to make faster progress without delays caused by winter conditions.
- Increase Property Value Ahead of Summer: By starting your improvements now, you could boost your property’s value before the busy summer season when the housing market typically picks up.
- Take Advantage of Current Rates: With lending rates influenced by economic factors, securing additional funds sooner rather than later might help you lock in a more favourable deal before rates potentially rise.
Top Tips for Using Your Mortgage for Home Improvements
If you’re ready to explore this route, consider these practical steps:
- Work Out Your Budget: Start by creating a detailed plan for your renovation, including a breakdown of costs. Having a clear budget will help you determine how much funding you’ll need to raise.
- Get an Accurate Valuation: Your home’s current value plays a key role in deciding if you can raise capital. Getting a professional valuation will give you a better sense of your options.
- Talk to a Whole-of-Market Adviser: Working with a whole-of-market mortgage adviser, like the team at Novus Financial Solutions, ensures access to a wide range of products. We can help you find the right deal tailored to your situation.
- Think Long-Term: While borrowing against your mortgage can be a great funding option, ensure you consider the long-term impact on your monthly repayments and overall financial position.
Take the Next Step Towards Your Dream Home
At Novus Financial Solutions, we specialise in helping homeowners make the most of their property’s potential. Whether you’re considering remortgaging or looking for further advance options, our team is here to offer tailored advice that aligns with your goals.
Spring is the season of transformation—why not make it the season to transform your home? Contact us today to explore how unlocking funds for your improvement projects could be the right choice for you.
Get in touch with Novus Financial Solutions now and take the first step towards turning your home improvement dreams into reality.
Think carefully before securing debt against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
