- Remortgage to possess renovations
Remortgaging happens when you key out of your existing home loan to a different financial with beneficial repayment terms and conditions, particularly straight down interest for the monthly payments. The planned the latest mortgage is employed to expend the amount you are obligated to pay to your existing home loan which means you nevertheless only have one to financial at any given time. However, while conclude the first financial prior to when planned, you will be susceptible to early fees fees.
When you remortgage to have renovations, in the place of interested in an alternative financial that simply takes care of your financial, you look to own a mortgage you to definitely does that and a great deal more.
These types of financing try protected with home collateral but always feature a predetermined rate of interest
Including, if for example the newest home loan keeps a good ?one hundred,000 harmony along with ?70,000 household equity, you might turn-to remortgage to own ?130,100 alternatively. The first ?100,100 might be always pay your home loan while the most other ?29,100000 will be repaid to you personally since a lump sum financing shielded by way of home collateral.
- Second charge mortgage
The next charge home loan is when your discharge guarantee with the addition of the next financial with the exact same property. Its a choice option to remortgaging to possess renovations and does not always mean you will visit web-site have to spend early installment costs due to the fact first-mortgage isnt becoming paid down sooner than consented.