Mortgage, Loan & Insurance Guides

Call our expert advisers now
on 01702 533 400

Arrange a Call Back

What are the best types of loans for home improvements?

If you’re looking to refurbish your home or rental property, then you may be wondering what the cheapest types of loans for home improvements.

The truth is it is completely dependent on your individual situation, how much money you need and whether you have one property, or several properties that the loan could be secured against. To make it easier for you to understand the different types of loans for home improvements available to you and crucially what these loans are best for, we’ve included a helpful summary of each below.

Further Advances

If you speak to your mortgage lender then they may allow you to borrow more, however, they may charge you a higher interest rate for doing so. For this reason, it is always worth speaking to our team of Mortgage Brokers to find out whether they can secure you a better deal. Our team will advise you on the cheapest deal available taking into account any additional fees your current mortgage lender may charge to leave them and any fees you would incur to remortgage onto a new deal.

If it works out cheaper for you to stay with your current mortgage lender and take out a further advance then we will advise you of this. Equally, if it is more beneficial for you to remortgage onto another mortgage product then we can arrange this for you.

Remortgages

If you already have a mortgage and are perhaps looking at ways to finance a new kitchen, extension or make substantial home improvements, then our Mortgage Brokers could look to remortgage your home or rental property to raise the extra funds you need. Because we are whole of market, we can compare all the remortgage products available to find you the cheapest deal.

The amount you can borrow will depend on how much equity you have in your property. If you have a small mortgage compared to the value of your property, then you will be able to borrow more than if you have a large mortgage. Similarly, if you have rental properties and some of them have small mortgages then we could remortgage several properties to release the cash you need.

Click here to learn more about remortgages or call our team on 01702 538 800.

Second Charge Mortgages

In some cases, it may not be cost-effective to remortgage to raise money for home improvements. For example, if you have to pay expensive early repayment charges to get out of your current mortgage deal. Or you have a mortgage on a very low-interest rate that you don’t want to lose. In these scenarios, we can raise the additional funds you need through a second charge mortgage.

A second charge mortgage is basically a loan that is secured against your property and you will make monthly repayments, just like you do on a normal mortgage. Interest rates are generally slightly higher than those available for remortgages, however, this may still be cheaper than coming out of your current mortgage deal. Our Mortgage Brokers will compare all options to show you the cost difference to advise you on the best option.

Click here to learn more about second charge mortgages or call our team on 01702 538 800.

Bridging Loans

Bridging loans for home improvements is a great option for property investors who are looking to renovate a property quickly. Or landlords who need to purchase then refurbish a property or a number of properties, such as bringing the property up to the latest energy performance requirements.

Bridging loans for home improvements are only a viable option if you can show how you will repay the loan, such as sale of property or the intention to remortgage onto a long-term buy to let as it’s essential that the bridging lender understands how you will be able to repay the loan before lending you the funds you need.

Our Mortgage Brokers have access to a panel of 21 bridging lenders who offer short-term solutions, usually between 1 – 24 months, for all types of properties, including unmortgageable properties that are not wind and watertight. Speed is usually of the essence with these types of loans which is why some of our bridging lenders will allow automated valuations and joint legal representation through their preferred solicitor panel.

Ingard has Mortgage Brokers who are specialists in the field of bridging finance, ensuring you can raise the maximum amount of funds out of one property or a number of properties quickly. Click here to learn more about bridging loans or call our team on 01702 533 400.

Go back