We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
When thinking of remortgaging, it may be a good idea to borrow more money as it can boost one’s borrowing power and increase their chances of getting one approved. On the Money to the Masses podcast, Damien Fahy discussed whether he thinks people should be borrowing more when remortgaging.
He said: “It can be a good idea to look into borrowing more money for example if you want to improve your home and the value of your house has risen significantly from when you first took out a mortgage.
“Also, in this environment because mortgage rates have fallen you could probably find that if you speak to a mortgage advisor you can borrow more money if you need to because you may have benefited your house price.
“It may have jumped 10 – 15 percent in the last two years which is very likely in reality and mortgage rates could be better.
“It means you could potentially boost your boring power when it comes to trying to take out another mortgage.”
When it comes to making the decision to re mortgage, everyone’s situation is different.
Britons should be aware of what other debts they may have as this could affect their re-mortgaging applications.
Mr Fehy continued: “The one thing to bare in mind is your circumstances.
“So how have your earnings fared in your own financial circumstances in terms of other debt etc.
‘This is just the start…’ Rishi Sunak may hit retirees further in next Budget [WARNING]
Universal Credit, PIP & state pension recipients set for bonus in December 2021 [UPDATE]
Man explains how he earns an extra £800 per month after being hit by impact of Covid [INSIGHT]
“That is going to come in it when you do an affordability check when you remortgage and look to try and borrow more.
“But assuming that those things are in good stead and you’ve got enough income coming in so you can meet those requirements of affordability and in some cases where they use multiples then there is no reason why you couldn’t borrow more money.”
If one is looking to re mortgage and improve their house, there are many ways to get a cheaper rates.
Britons should seek advice well before their fixed term comes to an end.
It has been suggested they should start looking around a few months before it ends, as the applications can take some time to process.
Additionally, people can get lower rates on some fixed-term mortgages if they qualify for a green mortgage.
This is an incentive for the borrower to either buy a green building or to renovate an existing one to make it greener.
The bank would offer them either a lower interest rate or an increased loan amount.
Every home must have an Energy Performance Certificate (EPC) when it is built, sold, or rented
This gives the property an energy efficiency rating from A or 100 (most efficient) to G or zero (least efficient) and is valid for 10 years.
Green mortgages can offer more competitive mortgage rates as some lenders discount these as a reward for purchasing an energy efficient home.
Other lenders offer cash back as an incentive.
Source: Read Full Article