releasing equity in home

spike7

I am a stay at home dad, my wife works part time, our income is not great, we have 5 children and another one on the way.

We have credit card debt, personal loan and a mortgage, we really need to make our current home bigger or move to a bigger home.

There is no way we would get a bigger mortgage, our only hope lives within our own home.....our current mortgage stands at £65,000, but the house is worth £180,000+.

Is there anyway that i can possibly release some of the money tied up in the house, if so how ?.

Any ideas or suggestions, greatly appreciated....

many thanks...spike7

herbiesjp

As long as your income can support a bigger loan, then you can either take a further advance with your current lender or re-mortgage to a different lender.

They wil not have a problem with the fact the money would be for home improvements.

However they will need to make sure that you could afford the new mortgage amount along with your other current debts.

How much extra do you need on top of the £65k?
What income do you and the wife have - including all benefits etc

spike7

I don't think our income would support a bigger loan.

Our total income per month is £1600, including benefits.

herbiesjp

If you do not think your income could support a bigger loan then I think you are not in a good position.

You should look at your current debts to see if you can move/transfer onto more favourable rates of interest to hopefully increase your monthly disposable income. i.e. if you have £5k on a card charging 15% then transfer onto a 0% interest card or anything lower than what you are currently paying.

How much do you have in debts/cards?

spike7

we have 8k in credit card debts....it was 15k but we have been slowly chipping away at it.

personal loan = 10k.

No way anyone will gives us a bigger loan....we are sat on a nice sum in bricks and mortar and its so frustrating that somehow we cannot use that to create a bigger house and also pay off debts so we become debt free.

Maybe our only other option is to sell up and move into council property, but finding a property that is big enough for 6 kids in our area is probably another no no......so it looks like we really are up poo creak

Anya

I know how you feel. We live in a shared ownership house which we will definitely grow out of in the near future. We have a mortgage for £24,000 which we could probably now up to about £75,000 but we have over £40,000 in equity on our half of the house. With all the talk about overpaying your mortgage it would be great if we could release the equity, pay off our current mortgage and still have enough left over for a conservatory and a deposit for the other half of the house. Is there no way of releasing the equity without remortgaging?