With House prices reaching record levels, many people are opting to extend their existing home. If you do not have enough cash available or simply do not wish to use your savings to build your extension. Then one option is to use a remortgage.In doing so,you maybe able to free up money( equity ) in your property to fund the building of an Extension to your Home. At Mortgage Advisor Glasgow we can help you look at all the options open to you, including a re-mortgage, or other more suitable means to raise the the finance you need…
Is a Remortgage the Best Option?
Deciding how to finance your Extension is a key question. At Mortgage Advisor Glasgow, we can look at all the options available. We will discuss your plans and what you are looking to achieve with your extension. Based on what your need, what your circumstances are and once we fully understand you, we will advise you on whether a re-mortgage is the best solution for you.
We will not just look at Re-Mortgage as the only solution, it maybe the case that a re-mortgage is the best solution. If that is the case we will recommend that route. It maybe that there are other solutions that are more appropriate for your needs, including second charge lending, unsecured lending, or a combination of all of the above.
Whatever is the most appropriate route to take, we will advise you accordingly.
What Exactly Is Remortgage?
A Remortgage occurs when you decide to Mortgage your Property again after your initial purchase. Remortgages normally happen when you move your existing Mortgage to a new lender. There can be a number of reasons for moving your existing Mortgage to new lender,including better interest rates or to raise further borrowing for a variety of reasons, including building an Extension.
Sometimes people get confused with Further Advances and Remortgages. A Further advance is normally granted by your existing Mortgage Provider. Whereas a Remortgage is normally granted by a new lender.
Do I need to Pay For a Solicitor to Remortgage?
This is up to you, many lenders offer Free Solicitor incentives to attract Remortgage customers. You are free to use your own Solicitor( as long as they are on the new lenders panel) If you decide to make use of the new lenders solicitor there is normally no cost to move your Mortgage to the new lender. Just check with your Mortgage Adviser to confirm this. If you use your own Solicitor there will be a cost( your solicitor will advise you of this)
What about Valuation of My Existing Property?
Again many lenders will include a Free Mortgage Valuation as an incentive to attract new customers. You can pay for your own Valuation or a more in depth survey at your own cost.Most free Mortgage valuations from lenders are just that Mortgage valuations, not full structural surveys.
What is Equity in My Home?
Equity in terms of a Property can be described as follows..The value of you Property minus any secured lending such as a Mortgage. So for example if your Home is worth £200,000 and you have a Mortgage of £120,000 on it, you will have Equity of £80,000..
The Equity in your Home is important if you are looking to secure lending on your Property to raise funds to build your extension. Then the more Equity you have , the more ( subject affordability and other lender criteria) money you can raise, release to fund your build.
What About Planning and Building Warrants?
You should speak with your Builders, Architects and local council planners before applying for a remortgage. Lenders will want to know all consents and planning are in place. Lenders are lending on your property, so they will want to be sure the property is suitable to lend on.
Summary.
If you are looking to build an Extension to your Existing Home and need advice on how to raise funds to do it. Then please feel free to get in touch and one of our Advisers, will be happy to discuss your options.
Michael Markey,CeMap,CeRER