House Extension, Renovation & Conversion Finance
Enhancing your home through extensions, conversions or renovations is a smart move to boost its overall value, with a potential 5% increase attributed to the addition of a new kitchen or bathroom, as highlighted by Hiscox.
Building a home extension as an investment requires practical planning and research. Whether tapping into savings or exploring straightforward borrowing avenues, a clear and practical approach aligned with your financial landscape will pave the way to realizing your dream home.
When it comes to funding these improvements, understanding your options is key. Here are five straightforward approaches to secure the necessary funds:
Remortgaging Strategy
Explore the option of remortgaging, which involves transferring your mortgage to another provider to access additional funds for your extension. This can be a quick way to secure capital, but it comes with the responsibility of a thorough risk assessment. Keep in mind that increasing your mortgage commits your home as collateral, necessitating a clear understanding of all associated costs. Check out our dedicated mortgages and financing advice pages for detailed insights and practical tips.
Smart Use of Savings
Utilizing personal savings is a prudent choice, eliminating the need for additional borrowing. However, with current uncompetitive interest rates, weigh the pros and cons carefully. Consider how long it would take to replenish your savings and compare this against potential borrowing costs. Each person’s situation is unique, making this a highly personal decision. Be mindful of any restrictions on accessing significant cash in premium savings account deals.
Credit Card Payment
Opt for a credit card for a moderate-sized house extension. Ensure you secure a card with a 0% introductory rate to avoid hefty interest payments. The Consumer Credit Act’s Section 75 provides an extra layer of protection. Similar to remortgaging, assess the feasibility of the repayment plan and scrutinize any hidden fees associated with this spending method.
Second Mortgage
Delve into second mortgages, also known as secured charge loans, by maintaining your current mortgage deal while securing a second deal from another provider. While potentially offering lower interest rates compared to credit cards or personal loans, this option demands careful consideration. Increasing the amount of borrowing secured against your home requires a thorough examination of the associated risks and benefits.
Unsecured Loan Practicality
If you’re hesitant about increasing borrowing against your property, consider applying for an unsecured loan, like a bank loan or home improvement loan. Unsecured loans rely on your credit history, offering terms such as a fixed interest rate and a repayment term of up to approximately five years. The interest rate depends on your credit score, emphasizing the importance of a solid credit history.
House Extensions, Conversions & Renovations In Shrewsbury
Call us on 01743 461471 or 07813 333374 to discuss your property renovation or home extension ideas, costs, quotes, prices & estimates. We are proud to build in Shropshire, Staffordshire, Worcestershire, Herefordshire, Cheshire, Mid Wales and West Midlands
Myndstone Commercial Buildings, Unit 15D Vanguard Way,
Battlefield Enterprise Park, Shrewsbury, Shropshire, SY1 3TG
Commercial Building Extensions and New Build Electrical Contractors across Shropshire, including Bishop’s Castle, Bridgnorth, Broseley, Church Stretton, Cleobury Mortimer, Clun, Craven Arms, Dawley, Ellesmere, Ludlow, Madeley, Market Drayton, Much Wenlock, Newport, Oakengates, Oswestry, Shifnal, Shrewsbury, Telford, Wellington, Wem and Whitchurch.