Funding Home Improvements | John Charcol’s House Renovation Guide
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- čas přidán 5. 09. 2024
- Funding Home Improvements | John Charcol’s House Renovation Guide
Steve Molina, one of our expert mortgage advisers, explains everything you need to know about funding your home improvements. For a more in-depth discussion about using your property to fund your renovations visit our website to book your free consultation: www.charcol.co...
Epidemic Sound own the rights to the music used in this video: ow.ly/k4hv50yu8o3
Video breakdown:
0:41 - Before Financing Your Renovations
0:58 - How Can I Borrow Money For Smaller Home Improvements?
1:17 - How Do You Pay Back Home Improvement Loans?
1:30 - Are There Any Other Options For Funding Small Home Improvements?
1:40 - Things To Keep In Mind
1:59 - How Can I Borrow Money For Larger Home Improvements?
2:12 - What Is Home Equity?
3:26 - Further Advances
3:56 - Further Advance Pros
4:13 - Further Advance Cons
4:32 - Remortgaging
4:50 - Remortgaging Pros
5:13 - Remortgaging Cons
5:45 - Second Charge
6:02 - Second Charge Pros
6:22 - Second Charge Cons
6:54 - Summary
About John Charcol:
Established in 1974 we are the original independent mortgage broker. With over 40 years’ experience in the industry we understand the challenges our clients face and have the experience and expertise to help guide them through the complex process of buying a house, remortgaging or investing in the property market.
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#Remortgaging #Remortgage #Mortgages #JohnCharcol
Great explanation thanks. Revelatory.
Great video!
I have a question in regards a remortgage for a home improvement (i.e. change layout for open plan kitchen and living area). If the property is valued £300,000 and the home improvements will increase its value 10% (according to two different surveyors), what will be the value of the house taking into account by the lender to provide the new LTV remortgage, the current or the potential new value after the home improvement has taken place? I'm just trying to work out wether it's worth remortgaging before or after a home improvement and over all, I'd like to work out wether it's a good thing bearing in mind the current situation with the housing market and the coronavirus, since any potential increase after a home improvement might be blowed away once the home improvement was completed for a very likely drop in the value of the properties.
Many thanks :)
Very informative video. Do you have any recommendations on home improvement mortgages? For example you buy a property for £100,000, however need an additional £50,000 for renovations, therefore you wish to have a mortgage at £150,000. Would you say this is a safe option?
Lenders will always require some level of equity in property on purchase. Typically, they’ll require at least 5 - 15% in equity (95 - 85% loan-to-value), so achieving a mortgage of 150% loan-to-value would not be possible. If you’re looking to purchase a property to develop, lenders can require 40% worth of equity in property on purchase. Funds on this type of purchase will then be dispersed in tranches using an after completion of works value called GDV (gross development value). I would recommend you speak to one of our qualified mortgage advisers. Thanks, Steve.
@@johncharcol Thank you Steve for your clear and honest response. As advised, will seek further advice from our mortgage adviser.
@@johncharcol any idea how long a further advance would take
Hello,
What is a further advance? We were wanting to remortgage but the building society have said it’s a further advance we need instead.
We have £94,000 equity with £76,000 left on the mortgage
I am confused what a Further Advance means