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What’s The Best Way To Fund Home Improvements?

REMORTGAGING | 14.11.2018

Here are just a few options for those looking for the best way to fund home improvements.

Whether you’ve been dreaming of getting a new kitchen or contemplating an extravagant loft conversion, the planning stages can be an enjoyable part of the home improvement process. The tricky part can be when the time comes to decide how to fund the changes you’re making to your home.

Here are just a few options for those looking for the best way to fund home improvements.

Remortgaging your property

For decades, remortgaging has been a popular option amongst those wishing to make home improvements.

It can enable homeowners to free up equity from within the property and use that money to fund the cost of renovations.

This process requires you to get a new mortgage and can involve taking on more debt and altering your monthly repayments.

Even though you’ve already proven your ability to keep up with mortgage repayments with your current loan, you’ll need to undergo a series of affordability checks before your new mortgage application is approved. This is because the lender will want to ensure your financial circumstances haven’t drastically changed since you last applied and that you can keep up with repayments on your new mortgage.

Remortgaging can sometimes result in early repayment charges, particularly if you still have several months or years left before your fixed rate period ends. Therefore it’s wise to do some calculations to determine whether remortgaging your property is financially worthwhile.

Borrowing using a credit card

If the cost of your home improvements aren’t too high, you could consider using a credit card. This can be particularly ideal if you can find one with a generous initial interest rate, as you won’t pay any interest providing you fully understand the terms and meet the criteria.

Failure to repay the required amounts could see interest accruing over time and your debt growing bigger.

Savings

Using savings to fund home improvements is often considered to be the most sensible option as it won’t require you to get in debt to pay for the renovations.

However, it’s wise to ensure that after using your savings to pay for a new kitchen, bathroom or garden patio, you’ll still have enough money set aside in case of an emergency.

If you were to spend all of your savings on home renovations and then your boiler was to break or your car was written off following an accident, you may have to borrow money in order to keep on top of your finances.

Depending on the type of borrowing you opt for, this has the potential to cost you more in interest than it will cost to remortgage your home.

With so much to consider, it can be difficult to determine which funding option is most cost effective. If you’re struggling to find the right choice for you, TaylorMade can help.

We’ll assess your current mortgage and finances before determining how much money you could free up by remortgaging your property. We’ll also take any early repayment charges and fees into account so that we can be sure you’re making the right financial move for your circumstances.

To learn more, please get in touch with our team.

Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

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Complaints:

In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567

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