Remortgage & Capital Raise for Home Improvements

Client Profile

Homeowners in Haverhill whose current fixed-rate deal was coming to an end and who wanted to build a loft conversion.

The Challenge

Borrowing an additional £45,000 for construction costs while trying to minimize the impact on their monthly outgoings.

The Figures

• Current Property Value: £400,000
• Outstanding Mortgage Balance: £180,000
• Capital Raised for Extension: £45,000
• Total New Mortgage: £225,000
• Loan-to-Value (LTV): 56.25%
• Term: 20 years
• Interest Rate: 4.25% (5-Year Fixed)
• Monthly Repayment: £1,394

The Outcome

Because their overall LTV remained low, Carl Shave from Just Mortgage Brokers moved them to a market-leading remortgage package that easily absorbed the extra capital at a highly competitive rate, proving much cheaper than taking out an unsecured personal loan.