There is much hype in the property market as house prices are on the rise in Sheffield. This is a time known as the “sellers’ market” where demand exceeds supply and there is simply not enough housing stock available for sale right now.
The Chancellor’s Stamp Duty Holiday comes to an end on 30th June and you may already be asking yourself whether now is the time to renovate your home and most importantly, where the money will come from to renovate this important project.
Whether the decision is to redecorate, extend your home to make room for a home office, upper storey extension, a loft or garage conversion, there could be funding available to make your improvement plans become a reality.
We have put together some key questions to help plan for your renovation project:
Can I afford to renovate?
By now, you may already have obtained some quotations or have an idea what the cost will be to carry out the works. You could be at the very beginning of the journey and simply want to know whether the project is affordable. Either way, financing your renovation project may be more affordable than you think!
Our friends at the Mortgage Advice Bureau have created a Home Renovation Calculator which provides valuable financial insight. Click here and simply fill in some basic details about your property and planned renovations. In return, the calculator will provide:
- A guide to the likely costs of the renovation
- How much extra your mortgage payments could be; and
- The impact these renovations are likely to have on the value of your home
Should I re-mortgage?
Re-mortgaging means that you will be arranging a mortgage with a new lender. Before you commit to this process, consider the following:
- Early Repayment / Redemption Fees: Depending on the terms of your existing mortgage, there may be early repayment or redemption fees if you leave your current mortgage deal before it ends. Check to see what these costs are likely to be so that they can be factored into your financial calculations.
- Other Costs: Taking out a new mortgage can incur additional costs such as arrangement, booking and valuation fees.
If you are considering re-mortgaging, contact us and we will introduce you to our friends at the Mortgage Advice Bureau who can discuss mortgage options, affordability, charges and even find the ideal package for you.
Could I simply borrow more money from my current mortgage provider?
Borrowing additional money from your current mortgage provider could be an option. It is best to speak to your existing mortgage provider and enquire whether they can help you and to see if this option is affordable.
In any event, it may be appropriate to discuss your financing options with a qualified and industry regulated mortgage adviser to tailor the best package to suit your individual circumstances.
Are there any other funding options available to me?
Re-mortgaging or borrowing more money from your existing mortgage provider may not necessarily be the best option for you and it is always wise to consider all the financial options available to you before you commit to your project.
Interest rates are at an all-time low and any savings in a standard bank account might not be providing the return you were hoping for. Perhaps investing in your own home could be an alternative as renovation work may increase the value of your home. Read our article on What Improvements Add Value to Your Home here for some ideas.
Perhaps a combination of borrowing and using some of your savings could be an option for you. Whatever option you choose, we always recommend you seek independent financial advice and as always, we are happy to introduce you to our friends at the Mortgage Advice Bureau for a friendly, no obligation chat about your own financial circumstances.
Are you thinking about selling your home or simply want to know what it might be worth on the market today?
Call Nicholas Humphreys (Sheffield – Broomhill & Crookes) on 0114 470 4715 or e-mail at sheffieldwest@nicholashumphreys.com and we will be happy to provide you with a free, no obligation sales appraisal and discuss a marketing strategy to give your property maximum exposure on the property sales market.
We NEVER lock our customers into unfair term contracts and we only get paid for the results we achieve.
Our office is open 7 days a week from 8am to 8pm.
