Remortgage to extend your home

ADVERTORIAL FEATURE

With home values not increasing at the rate they were five or six years ago, homeowners are faced with having to find different ways to add value to their home. Many families are currently stuck in a situation where they have outgrown their current homes and face having to make children share bedrooms as the housing market makes it impossible to move.
With some families simply unable to afford the costs of moving house and others stuck in homes with little resale demand, the continued doom and gloom surrounding the UK economy will leave many feeling like there is little light at the end of the tunnel.
There could be one effective way of solving your housing problems, and it involves taking a leaf out of the property renovator's book. It's a well known fact that property prices in the UK are artificially high and that a £500,000 house would not cost anywhere near that much to build.
Customers with limited space can therefore remortgage their homes, releasing money to extend the property and increase its value in the process. Whilst every house will have a slightly different situation, the £10,000 average cost of extending into the loft of a house to create an extra room or two can add up to as much as £40,000 to the property's value, leaving you wondering why you had never thought to make such improvements before.
In some circumstances where you obtain a better interest rate on your new remortgage, the extra borrowing may not increase monthly payments at all. However, for most the new remortgage will cost slightly more each month but the additional equity gained by substantially increasing your home's value should leave you in a better financial situation in the long run, and in the short term you have a bigger house for your growing family to expand into.
With interest rates on remortgages at record lows because of the price war between lenders, now is a good time to remortgage, release equity and to expand. In a few years time, you will also find that the renovations you have made to your property will make it a more attractive property on the open market, increasing your chance of selling it when the housing market recovers.
If you are thinking about remortgaging make sure you get good remortgage advice about options available to you.
Source www.thisislondon.co.uk/