| Find out how to fund home improvements with a | | | | way, your aim will be to find a lower interest rate. This |
| second mortgage loan, available even if you have a | | | | can reduce your repayments, which means you will |
| bad credit rating. | | | | have more money to save every month. |
| Copyright (c) 2009 Gordon Parkes | | | | Searching for a lender can be highly complex, if you do |
| As the credit crunch bites and banks become less | | | | it yourself. For example, contacting one lender means |
| willing to lend, you may think that your bad credit rating | | | | you can compare the mortgage deals available from |
| will make it harder to borrow money, especially if you | | | | just one company. |
| are looking for a second mortgage. | | | | If you contact several banks and building societies, you |
| However, if you go about it the right way, finding a | | | | will have to go through the complicated and |
| lender can be fairly simple. When you are looking to | | | | time-consuming process of comparing numerous |
| remortgage your property, there are a few easy | | | | interest rates, terms, fees, charges and conditions. |
| steps to take. | | | | One way to simplify this process is to work with a |
| First, decide on the amount you want to borrow. This | | | | broker. They will act as your personal shopper by |
| will depend on the purpose of your loan. For example, | | | | searching through hundreds of mortgages to find the |
| if you are remortgaging to invest in a buy-to-let | | | | one that suits your needs and budget. |
| property, you will be able to borrow between 70-80% | | | | When you apply for a second mortgage, you should |
| of the sales price. When you take out a buy-to-let | | | | ensure that you have all the necessary paperwork at |
| mortgage you may have to prove that rent will cover | | | | hand. This can include: |
| at least 130% of the mortgage payments. | | | | - Payslips. |
| However, if you are looking to fund home | | | | - Utility bills. |
| improvements, you will probably want to borrow much | | | | - Recent bank statements. |
| less than this. You may want to remortgage if your | | | | When you apply for a mortgage through a broker, you |
| home needs vital repairs, or if you are looking to move | | | | should only have to fill in one application form, rather |
| and want to spruce up your property. Home | | | | than completing different forms for each potential |
| improvements can increase the chances of making a | | | | lender. |
| sale, and could potentially increase your asking price. | | | | Whatever the purpose of your loan, a broker can take |
| You may also be changing your current mortgage | | | | the hassle out of finding a second mortgage. |
| lender or want to renegotiate with your lender. Either | | | | |