Home Improvement Loans
QWe Are Consibering To Obtain A Further Advance On Our Mortgage. What Should We Be Aware Of In This Case?
AMany major improvements are funded in this manner. The two main considerations of taking a further advance are: 1. The equity you have in your home (i.e. property value compared to your mortgage). If your current mortgage is 90% or upwards of the value of your property, then a further advance is unlikely to be offered by a mortgage lender. Because any increase in the value of your home may only be a fraction of the costs of the improvements, the lender will still look for a good level of equity before agreeing any new lending. 2. How long your mortgage has left to run. If you had say 15 years to go on your mortgage, then adding a further advance would not necessarily add too much to the monthly repayments. However, you must remember that you are paying interest on the borrowing for 15 years.