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New Year New Project - Funding to turn your renovation resolutions into reality.

24 Jan 2024 | 3 min

Did you make a New Year’s promise to yourself (or even the other half) that 2024 would be the year that you completed your big home improvement project?

The popping of champagne corks and fireworks might already feel like a distant memory but now is the ideal time to start turning your resolution into a reality. Whether it’s starting on the long-awaited loft conversion, expanding your living space with a conservatory, or simply sprucing up your bathroom and kitchen, at Together, we can help you raise the capital you need.

Our Second Charge loans are designed to allow you to release some of the equity that you have built up on your home, without needing to change your current mortgage or impact its current rate, which could be quite low compared to the market today.

As it’s a completely separate loan, you can choose to borrow over a shorter period than your main mortgage, potentially minimising the overall interest that you will pay over the full term.

You can also borrow if your home is classed as a non-standard property, defined as any house that is not built of brick or stone with a slate or tiled roof.

Currently, over one and a half million houses fall into the non-standard property category in the UK, due to being constructed using local or unusual materials, or using now outdated construction techniques. This includes many of the country’s historic and listed buildings, as well as concrete builds, which were offered as a cost efficient housing solution during the post war housing shortage in the 1940’s.

Though most high street lenders will automatically reject a mortgage or Second Charge loan application on non-standard properties, a specialist lender, like Together, can be more flexible.

Additionally, Together will consider applications from customers with less than perfect credit, preferring to view each case on the applicant’s personal circumstances rather than just a credit score. We also take a range of different incomes into account, helping customers with irregular incomes such as self-employed, freelance and gig economy workers.

Dreaming big? We’ll support your ambition.

Our Core Second Charge loans start from £50,000 (up to a maximum value of £250,000) allowing you to borrow up to 75% of your property’s value to complete even the grandest of transformations.

Ideal for home improvement projects at scale, such as full renovations, conversions and extensions, Core Second Charge is the big funding you need to support big aspirations.

Don’t need to borrow quite that much? We’ve got you covered.

Introducing our Second Charge – Smaller Loans, starting as low as £20,000 and going up to £50,000. you can choose between a 2 year fixed rate term at 12.20%, and a 5 year fixed rate term at 10.35%.

Whether you want to complete one specific project, such as modernising or extending your kitchen or bathroom, or you need to tackle a list of smaller tasks around your home such as redecorating, updating furnishings, or even installing new windows or an ensuite, being able to access a smaller loan can help you start the year in the right way.

As an example, a mortgage of £30,000 payable over 18 years, initially on a fixed rate for 5 years at 10.35% (and then on a tracker rate for the remaining 13 years at 2.00% above the Together Homeowner Managed Rate (THMR)) would require 60 instalments of £323.05 followed by 155 monthly payments of £342.22 plus a redemption administration fee of £110.00.

The total amount payable would be £72,869.32 made up of the loan amount (£30,000) plus interest on the loan (£39,345.38), arrangement fee (£995) plus interest on this fee (£1,203.32), the broker fee (£600) plus interest on this fee (£725.62) and the redemption administration fee (£110.00). The overall cost for comparison is 12.3% APRC representative.

A second charge loan is a completely separate loan to your mortgage so you’ll need to make payments on both loans at the same time, or your property could be at risk of repossession. You’ll also be required to repay both loans in full if you decide to sell the property, which could leave you with less deposit for your next home.

For more information, visit the Home Improvement Loans page on our website or get in touch to speak to an expert.

 

All content factually correct at the time of publishing.

Articles on our website are designed to be useful for our customers, and potential customers. A variety of different topics are covered, touching on legal, taxation, financial, and practical issues. However, we offer no warranty or assurance that the content is accurate in all respects, and you should not therefore act in reliance on any of the information presented here. We would always recommend that you consult with qualified professionals with specific knowledge of your circumstances before proceeding (for example: a solicitor, surveyor or accountant, as the case may be).

Lending decisions are subject to an affordability/creditworthiness assessment.

Any property used as security, including your home, may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

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