One of the classic questions going on right now in the world of home improvement is whether you should go for a home improvement loan or re-mortgage completely. There are a lot of different factors involved, so it’s not something that can be summed up in a single sentence.
If you’re going to go with home improvement loans, you need to get the best information possible and then make your decision. If you only try to go off of what friends have done, you could be putting your future financial plans in jeopardy. Not all loans are the same, and there are a lot of variables in the loans you receive. The fee structure for a home improvement loan is going to be different from a re-mortgage. You will still need to prove creditworthiness no matter which direction you choose, but crunching the numbers is important.
As an aside, if you are going to go with the improvement loan, proper research and information is a must. We recommend that you start here, since this site is chock full of great information: HomeImprovementLoans.
Moving on to the re-mortgage, it is what it sounds like — you are actually ending your old mortgage and switching to a new one. It’s usually done when you have a better deal for a mortgage, but it can be used to also save money for repairs that you need to make. If you want to raise additional finances from your equity, this is also where you want to get a remortgage scheme going as well.
You still want to make sure that you look at remortgage rates and ensure that this is really something that you’re going to be able to handle. A lot of people end up thinking that they will be able to deal with the fees as well as the interest rate, only to find that they fall on hard times later. You want to absolutely make sure that you will have a fair amount of stability if you’re going to make this big push with the remortgage. If you’re a bit more worried, you might want to go with the home improvement loan angle.
This is something that can’t be summed up as a true “decision” we can make for you. Everyone’s situation is going to be different, and it definitely goes without saying that everyone’s goals are going to be different as well. All you can do is research and make sure you are making decisions based on what you actually want to do. Good luck!