- Emma Parker
- July 1, 2021
Moving to a new house is a huge decision because of the numerous factors that include finances. Many people chose to improve their current property with damage repairs and some upgrades instead of moving. You will save thousands of pounds with the home improvement instead of moving, making it a cost-effective solution.
The real estate agents will try their best to convince the property owners to sell and buy a new house. They will give endless reasons that will make sense because of their experience in the industry. However, you should keep in mind the benefits we will discuss to remain on the improvement side.
Funds for House Improvement or New House
You need money for house renovation or buying a new property. And many people avoid the use of emergency funds as it leaves them with nothing during tough times. They either wait to save money or contact a lender for a loan.
You can get instant funds from no credit check loans to cover the cost of home improvement. The interest rates are reasonable, and the loan is approved based on your affordability. Moreover, the instalments will remain manageable with a shorter period.
The Direct lenders also provide home loans with a simpler process to get approval. You can negotiate the interest rates and the repayment terms with the lenders to get a better offer. However, the long repayment period of a house loan is a big commitment compared to the small home improvement loans.
Benefits of Home Improvement Over New House
Many factors favour the investment in the current home over the new property in some other neighbourhood. Comprehensive research is required to find the pros and cons of both options. Here, you will find the benefits of home improvement over buying a new house.
- Estate Agent Fees
Finding a home in a city on your own is an incredibly tough task. You may hire an estate agent to find the right property within your budget. They will help you find the house in your favourite neighbourhood that will fulfil the requirement list.
However, they will charge some fees for their services. Expect at least 2% of the sales value if you are hiring them to sell your house. They may help you get the best price for the current or new property, but their services are expensive.
You know your neighbours after living with them for years. You may have some special relationship with them with numerous moments of helping and sharing. Thus, it gets a little difficult to leave the neighbourhood with many friendly faces.
Moreover, there is no guarantee of good neighbours after moving to a new house. Even the extensive research of the area may not be useful until you live there for a few months. And a good neighbourhood is important if you are moving with your family.
- Cheaper Improvements
The new requirements such as an additional bedroom or more space are often the reason for moving to a new house. You may want to welcome a new member of your family to the new house. However, it is easier and cheaper to fulfil those requirements in your current house, if possible.
Moreover, these upgrades will significantly increase the overall value of your property. You can invest in a house extension to increase the space a little outside the house. Ultimately, you are investing in your house with instant returns while trying to live a comfortable life.
- Equity from the Previous Mortgage
You will have certain equity on the current house based on the amount repaid to the lender. It is not easy to get a loan with low equity over the house because of increased risk. Therefore, your current mortgage may create a problem with the plan of moving to a new house.
The prepayment charges and processing fees will also increase the overall cost of moving. For home improvement, it is easier to get a homeowner loan regardless of the equity over the house. You should consider online personal loans from direct lenders such as London Loan Bank for the faster and simpler online application process.
- New Mortgage
A new mortgage may not have the same interest rates, term, and repayment policy to support the borrower. The stress of repayment will cause financial troubles for a long period. Thus, a new mortgage is a huge risk for your financial condition if you are comfortable with the current arrangement.
In most cases, people upgrade to a bigger house or better location when they move. Thus, the cost of the new house is greater compared to your current home. This will increase the mortgage amount, instalments, and difficulty while managing the budget.
You can contact the current lender for the same or better offer on the remortgage. Or, you can spend some time on market research to find lower interest rates or manageable terms. However, the whole process is creating more problems than solutions for the homeowner.
In the end, it is your decision based on the requirements to decide whether to improve the house or move to a new one. It is a huge decision that requires a detailed analysis of each point. Though, you should select home improvement if you want to save money and effort.
Emma Parker is a financial counsellor at LondonLoansBank and has been serving for over 5 years. She is a psychology graduate from the University of Glasgow. Since she has keen interest in the finance field, she pursued a diploma course in banking and finance that led her to opt for her current career. She assists people choose the best loan based on their current financial situation and credit score. As Emma understands how people react to money problems, she gives them a helping hand to solve their financial complications.