Three great ways to make the most of your home in 2021

Being a homeowner is a privilege. Not only do you get somewhere to live but you also possess an asset that you can potentially use to borrow against, sell at a profit, rent out or leave as a gift to your children.

So what will you do with yours in 2021?

With the first vaccine approved for use and the housing market at its strongest in years, now’s the perfect time to make the most of your property. Whether you own your home outright or are still paying your mortgage off, there are a wealth of options to choose from.

Here are a few to think about.

Remortgage to get a better deal

If you’re coming to the end of your mortgage term, you should consider looking to remortgage – the transfer of a mortgage from one lender to another. If you don’t negotiate a fresh deal, you’ll be put on your current lender’s ‘standard variable rate’ – invariably more expensive than the current remortgage deals available that you could be eligible for. The good news is that mortgage rates are very low at the current time, due to interest rates falling to an all-time low. Getting the right deal now could save you thousands of pounds in the years ahead.

Move house to save money

When Covid-19 first hit in late winter 2020, experts predicted the housing market would go into hibernation. However, with interventions from the Government like the furlough scheme and the suspension of Stamp Duty for properties under £500,000 in England (£250,000 in Scotland/Wales), property prices are now at an all-time high. Moving house now, especially if you’re downsizing or moving to a cheaper area, is a great way to make the most from your home.

Remortgage for home improvements

Covid-19 has shown that many of us can do our jobs from home. While the return to normality will see a rise in commuting again, lots of people will carry on working from home (WFH) – at least for some of the time. If you’d like to build a WFH extension or convert a spare room to an office, your house can be a source of cash to pay for it.

If your mortgage deal is running out, it’s possible that you will be able to arrange a bigger mortgage if the value of your house covers the extra amount needed and your financial circumstances have not been impacted. While lenders are currently very cautious about lending to those with smaller deposits – especially first-time buyers – homeowners are in a favourable position as they’re seen as less of a risk.