borrowing capacity is not limited by your home’s
current value. You could potentially borrow
enough to repay your current mortgage and
fund the improvement works in full – up to a
maximum of 85% of the expected end value of
your home when works are complete.
These mortgages are especially useful for majorhome improvement projects, for example an
extension, basement or loft conversion, as many
traditional mortgage products and lenders will
not lend on a property where major structural
works are being carried out.
BuildStore’s unique cost based mortgages can
provide guaranteed stage payments based on
the cost of works before each stage, giving you
certainty in your budget and the funds you need
to get the job done! When works are complete,It’s always
important to
discuss your plans
with an expert
mortgage adviser”
Financial Expert Advice Build Store
Remortgage Your Home
When thinking about how to fund your
home improvement plans, your first thought
may be to remortgage your home and release
the equity to fund works. There are some great
low rate remortgage deals on the market at
the moment, but this option can be tricky
because your borrowing capacity can be
significantly limited.
Most lenders will only lend up to 80-95% of
your home’s current value, so you may not have
enough equity to release and cover the planned
works. A remortgage tends to only work if you’re
carrying out minor improvements, such as a new
bathroom or kitchen, and if you have sufficient
equity in your home, if not, a stage payment
mortgage could be the answer.
Stage Payment Mortgages
Stage payment mortgages differ from
traditional mortgages as they release funds in
stages – in arrears or in advance. Depending
on your individual circumstances, your stage
payments will either be guaranteed based on
your costs, or rely on an uplift in value at each
stage. Unlike a traditional mortgage, your
you can switch to one of your lender’s traditional
mortgage deals.
Bridging Loan
If you own a second property outright, you
could raise funds against this with a bridging
loan to fund the improvements on your current
home. When works are complete, the loan must
be repaid in full, either by refinancing or selling
your second property, or remortgaging your
current home based on its new increase value.
BuildStore Mortgage Services is the UK’s
leading homebuilding finance expert, with
access to a range of borrowing solutions
including exclusive mortgages specifically
designed for home improvement projects,
offering competitive rates and guaranteed
upfront payments. Our specialist mortgage
advisers will recommend and tailor a borrowing
solution that’s best suited to achieve your new
and improved home.0345 223 4888
http://www.buildstore.co.uk
@Buildstore
Image Credit: SOUP Architects“