Some UK Homeowners are Improving Instead of Moving

Wednesday, October 28th, 2020

Amidst the uncertainty of the COVID-19 pandemic, whilst some UK homebuyers and home movers have been enticed by the temporary stamp duty holiday, others have decided that improving their existing property might be a more attractive proposition than moving to a new house.

Financing Home Improvements

Once the initial decision has been made, it becomes a question of how to raise the finance required to undertake the desired changes. For some, this involves utilising credit cards or taking out an unsecured loan, for others, other solutions include a second charge mortgage or remortgaging the property in question to release some equity. 

Is Remortgaging or Taking A Second Charge Mortgage a Good Option?

Where the capital that will be required is fairly substantial, credit cards, or unsecured personal loans may not be feasible options (due to the restrictions many lenders place on the amount they will lend and, also, the loan terms they offer). Whilst equity and affordability will always be an important factor when calculating what may be possible under a second charge mortgage or remortgage, in many cases, there can be more flexibility.

Second Charge Mortgage or Remortgage – What’s the Difference?

When comparing a second charge mortgage to a remortgage, the key differences are that a second charge mortgage is completely separate from the existing mortgage, is likely to be with a different provider, and will have a slightly higher interest rate than a remortgage. 

For those unable to obtain funds from their existing mortgage provider and/or may face significant penalties were they to leave their existing lender in favour of a complete remortgage with another lender, a second charge mortgage could be an option.

Let Us Help You Decide

The process of crunching the numbers and deciding between various products can be complex as there are always multiple factors involved. For this reason, when preparing to raise the capital required, many homeowners will use the services of a professional mortgage broker, such as ourselves here at Caboodle Finance, who will provide expert advice as to whether either a second charge mortgage or remortgage would be the most suitable solution.

With all this in mind, if you would like to know more about these options and what may work best for you and your plans, please call Caboodle Finance of Sutton Coldfield, Birmingham on 0121 308 9114 to speak in complete confidence with one of our friendly mortgage experts. Alternatively, just access our online form HERE and one of our specialists will be back in touch.

We very much look forward to hearing about and advising you regarding your project.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

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Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

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Caboodle Financial Services Ltd, registered in England at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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