“Renovating: a process in which we tear down the walls of our comfort and rebuild to become better, stronger, and more beautiful than we were before”- Unknown
The cost of living has come at a high cost from every angle including higher mortgage rates which have been impacted by soaring inflation and the Bank of England increasing the bank rate to try to slow down the inflation rate. The increases in interest rate from the Bank of England is impacting mortgages because borrowing has become more high-priced. For instance, those who have a floating mortgage with rates bound to the Bank rate are likely to notice monthly payment increases.
According to the banking and finance sector representative for UK Finance, the typical rise for those on tracker mortgages will be £73.49 monthly and for those on standard variable rate (SVR) mortgages, it will be £46.22 a month.
Moreover, mortgage holders looking for new fixed-rate agreements are still likely to pay 6% more now for two and five-year deals because of the minibudget upheaval where fixed-rate deals rose in price.
Therefore, experts have advised mortgage holders not to fix their rates, because of the ongoing interest rate insecurity and the cost-of-living crisis being worsened by this and other contributors such as the mini-budget which went belly up.
Therefore, experts have advised mortgage holders not to fix their rates, because of the ongoing interest rate insecurity and the cost-of-living crisis being worsened by this and other contributors such as the mini-budget which went belly up.
In addition, the typical household cost surged by 9.6% in the past year and has reached a colossal figure of £24,000 more than in 2021. Because of this many people are preferring to refurbish their current home instead of relocating to another humble abode. Nevertheless, revamping your homely nest can still cost an arm and a leg though there are ways to save a pretty penny with the tips and advice section we have put together below.
How to save money and do property renovation?
Set a budget
Setting up a budget is a useful way of keeping a lid on finances to stop them from getting out of control, as you will have a better idea of how much you can afford to put aside for renovations.
How to do this:
Write a list of what you want to renovate and once this is done ask for a written quote instead of an estimate.
What is the difference between a quotation and an estimate?
• A quotation is a fixed price agreed set by the tradesperson and agreed upon by the customer before going ahead with any work on a property
• An estimate on the other hand is an approximate value which could change by the time the work is completed
Compare tradespeople and get at least three different quotes
Comparing tradespeople, having at least three different quotes, and searching for reviews from other customers is important as well as a good way of increasing the likelihood that you would be getting good value for money.
Once you have picked a tradesperson, ask for a written agreement that has the agreed costs. If the tradesperson says more work will need to be done after the job has commenced, ask for a written estimate and an updated costed contract. It is crucial to do this before any additional work is agreed upon and started.
Do some of the work yourself if possible
Try to cut down construction costs by asking your contractor if the cost can be reduced if you prep the space for the builders in the morning, clean the waste left from construction, or do the demolition yourself.
Many people can do DIY interior painting, tile a backsplash and do other minimal duties. You can learn how to do DIY tasks that are more difficult in nature such as the installation of floors through online videos, home development stores and community colleges or adult schools
Search for bargains
Generally, contractors purchase materials for your revamp from their suppliers. However, if you don’t mind doing extra legwork, you could search for bargains and buy the material to save money. Saving on the restoration of the materials can be done by keeping an eye out for sales, buying floor models of cabinets or appliances, and looking for minor scrapes such as discolouration or dents.
Obtain permits
If you are planning on going big with significant renovations such as home extensions or new construction, electrical, mechanical, and plumbing adjustments, you could need a permission form from the planning and building control departments within your local council. Although obtaining a permit is not free, this could come at a higher price if you do not get a permit.
If you do not have the required permit, you may be obliged to demolish the work you did and pay penalties before redoing any work. Constructions or developments which have not been permitted may result in your house selling for less than your initial asking price, once you decide to set up roots elsewhere. The permit procedure can be managed by contractors, however doing this, yourself is likely to save you money.