Could you remortgage to fund your dream project?
A better mortgage deal could pave the way to home improvements
With more of us working from home now, many are considering home improvements. If you’re a contractor, freelancer, umbrella employee or self-employed worker, it’s all the more important to review your mortgage. By remortgaging, you could help fund home improvements. But where do you start when looking for remortgage deals?
Reviewing your circumstances
If you’re unsure whether your mortgage is still right for you, CMME can help. As a broker specialising in mortgages for independent professionals, CMME is in a prime position to offer advice on the best new rates when your fixed-term mortgage is coming to an end. With house prices rising rapidly, your house might be worth a lot more than it was when you set your current mortgage deal. If that’s the case you may find you’re now in a lower Loan to Value (LTV) band and you could be eligible for lower rates.
Funding home improvements
A quick flick through Grand Designs magazine will reveal umpteen ideas for improving your home. If you’re tempted, remortgaging for home improvements could hep you fund that dream extension you’ve set your heart on, a smart new kitchen, loft conversion, or home office. The extra cash could also come in handy for a wedding or special occasion, to pay a tax bill or find tuition fees. You can also raise additional funds through a further advance, borrowing extra from your current lender; do check that your decision meets your particular needs.
Review your rate
It’s so easy to let the initial rate of your mortgage expire and get stuck with your lender’s Standard Variable Rate. When you can see the end of your current deal on the horizon, your lender will be about to swap you over to a Standard Variable Rate (SVR). This is likely to be higher than your current deal. UK homeowners on average waste £4,500 a year on Standard Variable Rate mortgages. If you haven’t reviewed your rate in a while, you’re probably not on the most competitive one – right now rates are as low as 0.87%* , so it’s a good time to shop for remortgage deals.
*Rate correct as of 18 August 2021
Shopping for remortgage deals
When you first organised your mortgage, you probably didn’t go for the first option you saw, knowing that you’d be tied into long-term financial commitment. You (or your broker) will have shopped around for that original rate and when it expires it makes sense to replace it with a carefully considered deal. If you’re considering a new mortgage before your existing deal comes to a close and are worried about early exit fees preventing you from getting the best deal available, a chat with CMME could put your mind at rest. Frequently the savings from your remortgage deal could cover the cost.
Find out more
A free initial consultation is a great way to look for remortgage deals. It’s quick and easy and in a short chat on the phone you will better understand your options for your mortgage. Let CMME do the hard work to find you a better rate.
Try the CMME mortgage calculator, and download a free guide on remortgaging for everything you need to know.
Your home may be repossessed if you do not keep up repayments on your mortgage