Mortgage Product Transfer vs Remortgaging
Remortgaging is where you switch to a new mortgage product. Some tend to confuse remortgaging with product transfer; the difference between the two is that when you remortgage in Leeds, you change products and lenders, whereas when you achieve a product transfer, you switch mortgage products but stick with the same lender.
Everyone remortgage scenarios can be different. It all depends on what the homeowner wants. They may want to look for a better rate of interest, consolidate their debts, or raise capital for things such as home improvements.
This article is going to be centring more on remortgaging/transferring products for home improvements.
How does it work?
We always recommend breaking down the estimated costs for the home improvements before you remortgage. From extensions to conversions, depending on what you want to improve in the property, the prices will differ.
Once you have worked out your estimated costs, the additional funds will be added to your mortgage. This will slightly increase your overall monthly payments as you are now paying off your mortgage as well as your home improvements. In some cases, your costs may barely increase. Again, this all depends on the home improvements carried out. As a mortgage broker in Leeds, we’ve seen some customers go up by an extra £50, to an additional £200.
Estimated costs include:
- Architect’s plans and services
- Building costs
- Building regulation inspections
- Planning permission
- The VAT
We would also advise that you have some extra savings aside from the remortgage, as if things go wrong or the costs don’t quite add up, you may have to cover them.
Why would I want to remortgage for home improvements in Leeds?
The most common reason for people remortgaging for home improvements in Leeds is to make more space. Whether it’s because they’re starting a family or want a bit of extra room within their home, the whole process can be a good alternative instead of moving home in Leeds.
Rather than going through the whole moving process, if you already love the home you live in, why move? It often works out that it’s much cheaper to remain inside your current home too!
You can remortgage for various types of home improvements; some include:
- Kitchen conversion – If you are long overdue for a new kitchen, it may be time to remortgage for a new kitchen. Many people choose to go down this route over most home improvement options.
- Conservatory – A conservatory provides a lovely peaceful place to relax at the back of a house with a stunning garden view.
- Loft conversion – Lofts are trendy amongst most homeowners. It’s rare to find a house that doesn’t have one nowadays. In particular, larger families or are looking to start one.
- Garage – A garage accommodates all sorts, a safe place to store your car, household items, garage workshop, or it can even be converted into another room if you’d prefer.
- Garden extension – Garden buildings of all types became famous, thanks to the previous lockdowns. They can give you extra living space, provide a quiet area for leisure out of the house or be a distraction-free working space.
Free Remortgage Review
Whether you need the extra space or just because you want to refurbish your home, there is always an enticing reason to remortgage. Feel free to contact our team to book you in for a free remortgage consultation, and let’s make a start on your application.
Our efficient team works 7 days a week, so make sure to get in touch to have a chat about your remortgage options. There are other remortgage scenarios to consider, so if you’re going to go down a different route, we would be more than happy to help with that too.
Date Last Edited: April 15, 2024
