I know there are plenty of people that are always thinking about making some changes to their property, be it a lick of paint or something a bit more substantial like getting a new kitchen fitted. The challenge for working on these projects – especially the bigger home improvements – is raising the capital to be able to do them.
Mrs M, one of my lovely clients, was definitely in this position. She came to me a little while ago wanting to secure some additional funds so that she could do some home improvements on her property.
Normally, and especially if a product is coming towards the end of its term, I would look at the remortgaging options in this situation. However, there were a few specific challenges in this instance:
1 – Mrs M was tied into an existing product with her bank.
2 – The product with the bank had about two years left to run.
3 – Wherever possible, we wanted to avoid incurring any additional or unnecessary penalties.
After a bit of discussion, both with Mrs M and her lender, rather than going through the financial pain and struggle of a remortgage I was able to secure an additional advance (this is when the existing lending provides an extra sum of money in addition to the initial mortgage).
The upside is that Mrs M was able to secure the funding for her property improvements, without incurring too much of an additional cost.
So, if you’re in a similar situation looking to improve your home but aren’t sure how to finance it, I’d be happy to have a chat with you and discuss your options with you.