Home Improvement Mortgage

There is a huge number of houses which need to be improved to bring them back to an acceptable standard but lenders apply retention's until the work has been completed. The BuildLoan ideal Home Improvement Mortgage does away with retention's and gives your client positive cashflow while they improve their new home.

With the shortage in building of new houses, the British housing stock is aging. 60% of owner occupied houses were built before 1960 with 41% built before 1945. All properties date, fashions change and buildings need maintenance. And yet, much of the housing stock remains unchanged from its original concept and is in great need of improvement. Government statistics show that 30% of owner occupied homes are now classified as “non decent”.

Benefits of refurbishing a property:

• You can often live in the house while the work is being carried out
• You can pace the work according to your means
• You can ‘grow into your house’ by refurbishing it room by room as you need them
• You can buy a property to refurbish at a relatively low purchase price, making it an affordable option
• It’s a suitable investment for first time buyers
• There are literally thousands of opportunities available and they’re quite easy to find in all areas, even where new properties are scarce
• You can chose to live in an urban regeneration area, or in a renovated rural cottage
• You end up with a property which has more character and history than a new house
• You can carry out a lot of the work yourself and inject a lot of your personality into the process
  

Reasons for refurbishing:

There are many reasons why people are looking to refurbish older properties. They may not be able to find a suitable property in the part of the town or city in which they want to live so the option of buying a property which they can then change to suit their needs is appealing. They may also have certain ideas that they want to incorporate into a house and refurbishment is a way of achieving this or they may have connections with building trades and either they or family or friends will be able to do much of the renovation work.

Typical clients:

There are also a very wide range of people looking to refurbish, from people looking for affordable housing to people doing large projects. It is an ideal market for the first time buyer to bring an older small house or flat back to life and get onto the housing ladder. People looking to move up the housing ladder quickly are also using refurbishment as a way of accelerating the growth in value of their property. For families, improving and extending a property they currently live in can be a cost effective way of getting the space they need rather than moving house as there are not the costs associated with buying selling and moving, children do not have to change schools and local neighborhood support systems remain in place.