How you could remortgage to cover the cost of solar panels
As Brexit fast approaches and all the uncertainty that goes with it, it seems more and more people are remortgaging their current properties to undertake all sorts of home improvements with the hope of increasing that property’s value in the long term.
One of the options of a home improvement is solar panels. These could increase the property of your house to those who want to have an energy efficient house and not pay so much for energy bills. To some people, this is a very important factor when it comes to buying a property, especially if they have already been installed by you, they will not have the cost of buying them, but will have the benefit of cheaper energy bills. It could also have the opposite effect though, so it is really worth looking into it and asking a local estate agent for their opinion before having these done as some consider them to be a bit of an eyesore on a property, not looking as aesthetically pleasing as other properties near and around yours may do.
Remortgaging is a way of getting more money against your property, therefore increasing the amount you owe back on your mortgage, or if you do not have a mortgage, a way of getting some money for home improvements without touching your own savings etc. The more equity you have in your property, the easier it will be to get a mortgage against your property as it is not a big risk for the lender. With Brexit looming, Mortgage Arrangers have seen a 25% rise in the number of enquiries to remortgage. The alternative way of remortgaging is looking for an alternative lender to improve your monthly repayments by looking around and finding a lender that can offer you a better rate and at a lower monthly repayment. By borrowing money to make home improvements, you are looking to invest into the future in the hope that in making these improvements, whatever you decide to do, you will benefit from it in the future when you eventually do go to sell your property.
If you own your property outright, it should be fairly straightforward and even easier to get a remortgage and they will most likely lend you the money for whatever you would like it for as again, compared to value of the property, it will be quite small, unless it is a case where you require more than 90% of the value of the property. In this case you will find it extremely hard to find a lender that is willing to lend you that amount. They see this as a high risk.
Although solar panels can be quite costly to install, the long term benefits in regards to energy bills are quite good. They can cut your electricity bills by up to half. Energy prices are always increasing, so in the long term, the amount your solar panels will save you in the long term will also go up, another point and benefit for those looking to purchase a property with solar panels.
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