Additional Borrowing on Mortgage

One potential reason for remortgaging is to take out additional borrowing on a mortgage to consolidate debt. At Clever Mortgages, we’re experts in helping customers find the right remortgage solution, based on their individual situation, alongside the goals they wish to achieve.

In this guide we focus on a customer who wanted to take out additional borrowing on mortgage to help consolidate their debts. We’ll cover:

  • How we helped our customer with getting a mortgage product that allowed
    additional borrowing – so that he could consolidate debt, and just have one
    manageable monthly payment
  • Getting him a lower rate on his mortgage, and one that was far better than that on his secured loan, meaning what he had to pay out each month was significantly reduced
  • How we consolidated his loans with his additional borrowing on the mortgage, to make his payments more manageable

Additional borrowing on mortgage

With Clever Mortgages, we were able to help Mr P with:

  • Bringing down his mortgage rate – we found a mortgage with a trusted lender that reduced his mortgage rate
  • Consolidating his other debts within his mortgage – meaning his monthly overall repayments were £512 lower
  • Keeping his mortgage term the same – Mr P was able to achieve all this whilst keeping his mortgage term at 22 years. Meaning the £512 per month saving made no difference to the term at all

 BalancePaymentRateTerm
Previous Mortgage£95,279£5262.53%22 years
Previous Secured Loan£43,470£4728%15 Years
Previous Unsecured Loan£5,828£1643 Years
New Mortgage£147,079£6501.45%22 Years

Completed 21/03/2019

Our client came to with the aim of consolidating his mortgage with a secured loan he was paying for each month (with an 8% interest rate). At Clever Mortgages our experts always look at each case individually, with the aim of finding the best solution – and achieving each customer’s goals.

We were delighted to be able to take the hassle away from the remortgage process for Mr P: He just had to tell us some details about himself and his financial situation, and discuss the goals he had for his remortgage. We were able to find him a low fixed rate of 1.45%, making a real impact to his monthly repayments: lowering them from £1,162 to £650 – meaning his saving was an impressive £512 each month!

We’ve helped 1000s of customers, with finding a remortgage solution that best suits them.

We help customers achieve their remortgage goals, and we know the best lenders and products to look to for each individual situation.
We could give you the best chance of getting on a great remortgage deal, even if you’re:

Needing a mortgage after an IVA
Looking to remortgage with a Debt Management Plan
Worried about other defaults on your credit file
After a bad credit self-employed mortgage

Enquire with us about getting a remortgage with bad credit, and we could:

  • Search for the right deal for you, even if you’ve got a poor credit history – many of the customers we help have found themselves in a bad credit situation, and might have been on a Debt Management Plan or in an IVA.
  • Discuss with you the different options available for meeting your specific goals – we can discuss your individual goals for remortgaging with you, and take the hassle away from the remortgage situation.
  • Make sure your application goes to the best lenders for you – not all lenders offer mortgages to people with a bad credit history, but we know which ones are most likely to say “yes”, and to give you a good rate when they do.

Why should I use a mortgage broker for my remortgage?

  • You’re likely to only have to do one application – this will save you time, and more applications from being recorded on your credit file
  • Brokers can advise on what would improve your chances for achieving a specific mortgage goal – e.g. finding a guarantor or opting for a joint mortgage
  • They can take the hassle of application forms away – talking you through every step, and asking all the right questions

What next?

If you are looking for expert advice on getting a remortgage with bad credit, contact our team today. We are experts in offering solutions to people with bad credit and can help if you need a hand with your next move.

Speak to a broker

Laura Connor

Laura is a specialist mortgage broker, whose been working for Clever Mortgages for 5 years and has over 11 years experience in Financial Services.

Call us on: 0800 197 0504

Family stood in loft conversion after home improvement loan

Making home improvements adding value to your home

With Easter just around the corner, now is a great time to start planning those home improvements you’ve been waiting to make. With our roads notoriously busy and holidays extremely pricey, the Easter break is the ideal opportunity to roll up your sleeves and get that much-needed DIY done!

The best types of home improvements

There are a number of improvements that can help to increase the value of your house. Looking at similar properties in the local area will give you an idea of what changes you can make and what effect these could have on the value.

Several types of improvements can add extra room space to your house, such as a loft conversion, basement room, extension, cloakroom or shower room.

The more obvious improvements, such as a conservatory and upgrading the kitchen and bathrooms can also add value. But it’s important to look at the cost alongside what extra value might be added.

For any building and electrical work carried out make sure you get all of the correct paperwork including planning permissions and works guarantees to help facilitate any future sale of the property.

A 2017 survey conducted by Which.co.uk showed the top 10 most common home improvements as;

  • Installing a new boiler or central heating system
  • Having a garden make-over
  • Installing double glazing
  • Building an extension
  • Knocking through rooms
  • Fitting solar panels
  • Getting a loft conversion
  • Adding an extra bedroom

Financing your home improvements

 Because major upgrades to your property can cost a lot of money, look at the cost of borrowing and how much you can afford to pay back each month. Two common ways to finance larger-scale improvements are remortgaging or taking out a second loan secured on your home. With interest rates being generally low at the moment, these two options are worth costing out and Clever Mortgages can help find the right deal for you from our comprehensive range of lenders. If you want to get an idea as to how much you could borrow, access our Mortgage Calculator.

If you’re looking to remortgage then check there are no early repayment charges (ERCs) for repaying your current mortgage and taking out a new one with a new lender. These charges are often applied during, and sometimes for a few years beyond, a special offer period. The new mortgage will need to cover this cost and the home improvements, but you’ll need enough equity in the property to do this.

If you have ERCs in force, then a second charge could be the best option as it could can be taken out without affecting your current mortgage. It could also have a different term so you can plan when you want to pay it off. If you are looking to make some changes to your home and increase its value, either to sell it in the future or for the quality of life, our experts can guide you through the process.

Remortgaging or taking out a second charge may be good solutions for some customers – however, they’re not suitable for everyone. It’s important to consider the long-term costs of raising funds in these ways, which can easily be reviewed with the assistance of an expert mortgage adviser. If you need to borrow a smaller amount of money you may be better off considering an unsecured product.