Downsize or not?

NORTHERS

Hi everyone,

I am asking for advice please if possible. We have a house which we bought at £115,000 and we are thinking to get a two bedroom house now for a lesser price of about £105,000. Would it be cost effective after the costs of using solictors, removal firm etc? We would like a smaller mortgage hence the question. Another question is that we would like to make our kitchen bigger and a quote of £17,000 plus was given to us. How would the better way to pay for this - via adding it to my mortgage or loan etc? If there is a good way to pay for an extension/kitchen then we may just stay at our home???

Thanks for your help.

Take care,

Northers

dimbo61

Selling your existing home and buying a slightly smaller/cheaper place may not be worth it !
The costs of buying and selling soon add up!
How much deposit did you put down? how much have you paid off the mortgage ?
What we really need to know is how much equity you have in the property!
Your existing lender would be your first port of call when looking at borrowing more money to improve your home with the best rates .
But this depends on the LTV and wether you can afford the bigger mortgage costs!
Could you refurbish the kitchen without an extension ?
Will spending £17k on an extension/new kitchen actually add £17k on the value of the property

opinions4u

NORTHERS wrote: »

I am asking for advice please if possible. We have a house which we bought at £115,000 and we are thinking to get a two bedroom house now for a lesser price of about £105,000. Would it be cost effective after the costs of using solictors, removal firm etc?

Do the sums! Here's my guesses, but it could be different locally.

Estate agents: £2,000
Solicitors: £1,400
Mortgage ERCs: £x,xxx
Survey fees: £400
Removal firm: £500

We would like a smaller mortgage hence the question. Another question is that we would like to make our kitchen bigger and a quote of £17,000 plus was given to us. How would the better way to pay for this - via adding it to my mortgage or loan etc? If there is a good way to pay for an extension/kitchen then we may just stay at our home???

I'm puzzled that you would like a smaller mortgage but are considering borrowoing £17k to pay for the kitchen.

If you want to reduce your debts, the best way to pay for new things is to save up for them. Not to increase your debts.