Home Improvement Remortgages

Am I eligible for a home improvement remortgage?

Whether you’re eligible to remortgage for home improvements depends on several factors, including your level of equity and your current financial situation. Every lender has their own criteria you must meet to be able to qualify for a remortgaging plan. You should be sure that you could afford repayments before agreeing to any new terms.

By remortgaging your property, you are effectively transferring your mortgage plan from one lender to another with the option to borrow more to finance renovations. This way, you can gather a lump sum for home improvements, though you will end up owing both your initial mortgage plan total as well as the new amount you’ve borrowed to your new lender. The more equity you have in your current property, the more funds you can release, giving you an opportunity to secure better repayment terms.

Pros and cons of remortgaging

Remortgaging your property can be beneficial for certain situations. However, it isn’t for everyone. There is much to consider, so be aware of all the aspects of borrowing before making any financial decisions.

Pros of remortgaging

When remortgaging your property, there must be initial benefits to make the decision.

• You could secure a better interest rate and lower monthly repayments if you already own a good portion of your property.
• You could release equity as a lump sum to finance renovations, which could increase the value of your house.
• You could still switch to a different lender later.

Cons of remortgaging

There are also several disadvantages to remortgaging to be aware of.

• Depending on the amount you borrow, you could end up owing more than your original mortgage, meaning you’ll be paying back for longer.
• If you exchange equity for a lump sum, you’ll own less of your property outright.
• There are several fees to consider when remortgaging, so be sure you can afford to cover the cost of these before applying.
• As with any mortgage, your home is the collateral, meaning your property could be at risk if you fail to make your monthly payments.

Commonly asked questions about home improvement remortgages

Deciding whether to remortgage is a big financial decision, there is plenty to research before making any choices. Here are a few of the more common queries around home improvement remortgages.

How much can I borrow?

Your borrowing amount will depend on several factors, including your equity and your financial situation. Typically, you’ll be able to borrow between £3,000 and £500,000.

How long are the repayment terms?

Norton Finance offers flexible repayment terms of between 1 and 40 years.

Do I need a valuation?

You will need a valuation on your property during your application process. This may incur a fee, which is another expense you should be sure you could cover before applying.

Are there any loan fees?

At Norton Finance, we get our commission from the lender, not the customer. We may charge a broker fee of £995.00 and for customers who require a specialist lender, we will charge a fee of 12.5% of the loan amount capped at a maximum of £4950 for our services.

Applying for a remortgage

If you’re sure remortgaging is for you, you first need to decide how much you want to borrow. We’ve worked to make the process of getting a quote more convenient for potential applicants.

Use our remortgage calculator to help decide whether remortgaging is the right move. Simply input the amount you’d like to borrow, and your preferred repayment terms and we’ll guide you through the next steps.