There are many reasons to upgrade your house ranging from simply wanting something different to the nessecity of needing extra space as your family grows! I have recently found myself in the situation of needing extra space, currently my three sons share a bedroom that although is extremely generous in size as they are growing they are definitely beginning to need more space.
If you’re like me then you have absolutely no idea where to start! I was absolutely baffled and honestly quite overwhelmed by the task ahead of me. We decided to start with getting quotes from local builders so that we had a figure in mind to work with, which ended up being an eye watering £45,000 which to my mind was going to be impossible. But not one to be deterred and since I knew we definitely didn’t have enough equity to be able to move house given all of the recent price rises I decided to investigate. First of all I used Right Move to determine how much I could possible borrow. And then I took that figure with me to look at remortgage calculators like this one which helped me to have a better idea of what my repayment figures would look like whilst also taking into account the money I would be taking out. I absolutely LOVE to check the figures like this because I can play around with the numbers and rates without feeling like I am harrassing my mortgage broker, I was then able to go to her with a very specific example of what I was hoping to get.
There are obviously other options out there for you including help to buy and many other schemes but if like me you love your house then remortgaging may just be the option for you when faced with the dilema of needing/wanting a bit more space. We have tried several different (cheaper) options over the last 12 months with better storage and bunk beds and decluttering but in the end came to the conclusion that actually we just needed more space. The other thing to consider when remortgaging for an extension is that you can then be in control of your own design and really get the house of your dreams!
Definitely make sure you make an informed decision on your own situation which is where I think the online calculators really are helpful and consider all of your options. Rates as always could rise or fall but if you can over pay some each month then you will give yourself a better loan to value ratio when your next fixed rate term is up.
Is now the right time to remortgage?
In order to answer this you need to look at your own specific situation, whether you are tied in to a fixed rate at the moment (and therefore liable for a charge to change), how much your loan to value ratio would be after taking a chunk of money out, what your repayment options would look like after doing and generally just explore every option and be as informed as you possibly can!