Living in Harrogate is wonderful – it’s a beautiful place with a great sense of community. But if you’ve been in your home for a while and feel like it’s a little small or outdated, you don’t need to move away to find happiness!
Remortgaging your home can help you to release funds that you can use to improve your property. You’ll benefit from added enjoyment of your home and, if you decide to move at a later date, you also add extra value to your property.
Keep reading to find out how to remortgage your Harrogate property and which home improvements will add the most value.
What does remortgaging your home mean?
There are two reasons people choose to remortgage. The first is to switch to a better mortgage deal to save thousands of pounds in interest, reduce the loan term, or cut monthly payments. This saves you money in the long-term.
The second reason is to release equity from a property to receive a cash sum. That’s what we’re looking at today: using this cash to re-invest in developing your home. You can add value through renovations and home improvements which you could later recoup when it’s time to sell.
How remortgaging to release equity works
Remortgaging to reduce your loan term or monthly payments means you take out a new mortgage deal based on the amount you now owe, rather than the amount you originally needed to buy the house.
For example, if your original mortgage was for £200,000 and you’ve now got £150,000 to repay, your new mortgage only needs to cover the £150,000. You also have a greater equity stake in your home, which reduces the loan-to-value ratio to give you better rates.
However, to release equity in the form of cash, you would borrow more than you need to own your home. So, in this example, you could apply for a new mortgage of £180,000 to borrow the remaining £150,000 plus an extra £30,000 to spend on your home improvements.
Speak to a mortgage expert in Harrogate to find out more about remortgage deals and releasing equity from your home.
Ways to add value to your home in Harrogate
Most people choose to release equity from their home through remortgaging to fund home improvements. There are two clear benefits of doing this: not only will adding extra rooms or renovating a property add value to the property, but you’ll also gain more enjoyment from your home.
Be inspired by these popular ways to extend and renovate your home!
Install a new kitchen
Custom kitchens add value and make your home more efficient, too. From built-in appliances to rearranging the layout for better space efficiency, a renovation will revolutionise your kitchen area.
A full kitchen renovation, including the stripping out of old cupboards and appliances and adding new custom designed worktops and appliances, will cost anything upwards of £8,000.
Add a new extension
If you’ve got plenty of outside space but feel cramped indoors, a new room or two will add great value to your home.
A one-storey extension could be as simple as adding a few extra metres to turn a galley kitchen into a living-dining space. Alternatively, a large extension with two or more floors could double the size – and value – of your home.
When you’re adding extensions, make sure you’ve checked planning permission requirements before booking contractors to complete the work.
Extend up into your loft space
A loft extension is a great option if you need extra indoor space but haven’t got a large garden to extend into.
An attic conversion costs from £15,000 – but could add over £23,000 to your property’s value. Again, make sure you adhere to all planning and building regulations before you start work.
Convert or add a bathroom
From adding a small ensuite to your master bedroom to converting a bathroom to a wet room, there are lots of ways to adapt your washrooms depending on your needs, budget, and property size.
An extra bathroom – even a small ensuite – could add around 5% to your property’s value. This could be more if you choose to convert a traditional bathroom into a wet room or build an extension to accommodate a new family bathroom.
Speak to a mortgage expert to find out more
As you can see, remortgaging your home to release funds could add some serious value to the property. If this sounds like an attractive option to help you extend the enjoyment of your existing home, it’s time to speak to a mortgage adviser.
Your local mortgage expert will help you decide if remortgaging is right for you. They’ll also find you suitable mortgage deals that you might not find on the high street. Contact our Harrogate branch for expert mortgage advice today.
Find out more about our Mortgage Advice service in Harrogate
Meet our Mortgage Advisers in Harrogate
Read our previous news article