Whether you’re planning a home extension or a dream holiday you may be asking can I borrow more on my mortgage to fund it? This article explains everything you need to know.
Can I borrow more money on my mortgage for home improvements?
Funding home improvements is one of the most common reasons why people borrow more on their mortgage. So if you’re asking can I borrow more money on my mortgage for home improvements? The answer is yes.
You can do this by choosing to remortgage to release equity from your home. This means you’re borrowing more against your property to free up cash. The amount you’ll be able to release will depend on factors including how much equity you have in your home. And just like when you apply for any mortgage, you’ll need to meet the lender’s lending criteria too.
Can I get better rates when I borrow more?
Possibly. When you remortgage you may get access to lower rates than you were previously on, meaning your monthly repayment may not be as much as you think. So it’s a good idea to speak to an expert adviser because they’ll run through all the figures and any costs with you so you’re fully informed.
Why else can I borrow more on my mortgage?
There are lots of other reasons why people remortgage to release equity. As well as funding home renovations, some other major reasons for increasing your mortgage include:
• Paying off debts: If you have debts like loan repayments you need to make each month you could use the money to pay these off.
• To help your child buy their first home: Another popular reason why people remortgage to release equity is to give the cash to their children or grandchildren to help them get on the property ladder.
• Paying for a dream holiday or a new car: And when you free up cash you can also use it for something you enjoy like the trip of a lifetime or buying a nicer car.
Can you add additional borrowing to my mortgage: Are there other options?
When you’re asking ‘can you add additional borrowing to my mortgage’ there are other options as well as remortgaging to release equity. One option is to take out a ‘further advance’. This means borrowing more money from your existing lender. Or you could take out a ‘second charge mortgage’. This is a type of secured loan that uses your home as security.
Can you take out a mortgage for more than the purchase price?
Mortgages are available that allow you to borrow up to 95% of your property’s value so in theory if your home is worth £200,000 and you have £100,000 outstanding on your mortgage, you could increase your mortgage to £190,000 and release £90,000. But whether a lender would let you to borrow this amount is another matter though as lenders will need to be sure you could pay it back and there may be other issues too.
However there are no traditional mortgages that allow you to borrow more than 95% of the purchase price. There may be some borrowing options available to you though depending on your circumstances so it’s a good idea to speak to an expert adviser about this.
Can you help me borrow more?
Yes! We have a team of experts here to explain everything you need to know about additional borrowing. And we can help you find the right option for you too. So call us on 01625 573124, click here to arrange a call back or email us [email protected]
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.