The most efficient way of borrowing is to re-mortgage if you own your own home or another property. Re-mortgaging is typically less expensive than bridging finance, however you should have income that is sufficient show you really can afford extra repayments.
Just how much you are able to borrow relies on:
- Your principal home’s equity (its current value minus what’s owed on the existing mortgage)
- Your credit score
- How much the proposed improvement might enhance the property’s value.
Re-mortgaging will be the possibility to get a less expensive deal on your own loan that is existing as a new one. The drawback could be the arrangement cost, which is often a few a lot of money.
Make certain you account for any fees and charges for repaying the advance if you reduce steadily the loan or offer the house early.
2. A Property Improvement Loan
These could either be unsecured or secured: