House prices are on the rise which means there’s a good chance the value of your house has increased quite a bit since you bought it. It’ll go up in value even more if the area you live in has since become very popular or if you’ve made some significant additions to the house like an extension or a loft conversion.
An increase in the value of your house is always good news but most people simply don’t take advantage of it. There are a lot of things you can do to reap the benefits of increased home value so if you’ve had the house surveyed recently and it’s worth more than when you first bought it, consider some of these things.
There are a couple of good reasons for remortgaging your home and an increase in value is one of them. Interest rates on your mortgage are dependent on the value of the house. Banks will charge less interest on a house that’s worth more because they’ve got more insurance from the property itself. If your house has gone up in value by a significant amount, you’re probably paying higher interest rates than you need to be. Get in touch with a house conveyancing company who can help you navigate the maze of paperwork involved with remortgaging your house and you’ll be able to find a better deal with a reduced interest rate. Even a small decrease can save you a lot of money over the years and you can use that extra money to save for the future or clear any other debts that you may have.
Home Equity Line Of Credit
If the value of your house has gone up you can usually get a good deal on a home equity line of credit (a line of credit that uses your home as collateral). The major benefit of doing this is that you can then take that money and invest it back into the house. If you start making more improvements, you’ll push up the value of the house even more. By doing this a couple of times, you can take your home and double its value over a few decades, making it a great investment for the future if you eventually decide to sell it.
Home Equity Loan
As well as a line of credit, you can also get a loan against the house. The most common reason people do that is to get the deposit and invest in another property. Owning a second property is a great investment for the future because you can rent it out to pay the mortgage on it and then earn a little extra from it. Once the mortgage is paid off, it’s a great moneymaker that will help you to guarantee your finances are secure once you’ve retired. This is the way that a lot of landlords build a big portfolio because they will then take another home equity loan on that second property once the mortgage is paid off and buy a third property, and so on.
When the value of your home goes up you’ve got a big opportunity to invest in your future so do something about it!