Loan, credit card or re-mortgage?

LISALALA

Hi guys, this is the first time I've posted a thread, just need a bit of advice please.

My husband, toddler and I currently live in a two bedroom flat. We are wanting to move somewhere with some outside space for our little boy but are reluctant to put our flat on the market until we've spruced the place up a bit! (new kitchen, bathroom, carpets etc)

We currently have around £27000 and 12 years left to pay on our mortgage. We have guesstimated that we will need around £5000-£7000 to bring our flat up to the standard required to get a good price back when we sell.

After checking all the comparison sites, it seems as though the cheapest rate we'd get on a loan is going to be around 8.5% APR, which is roughly the same sort of rate we could get on a cheap standard rate credit card. The other option we are considering, would be to increase our rather small mortgage which is currently at the Halifax standard variable rate of 3.5% APR.

I haven't spoken to Halifax yet, so am unsure at this time whether this option would incur any admin charges etc.

Any advice would be greatly appreciated.

savemoney

It depends on what needs doing to flat but honestly sometimes it isnt worth spending too much money as you rarely get the money back it just makes it more appealing obviously any poor condition or lack of things like CH may hamper its sales value unless price is reasonable

Painting is about the most worth while job and costs the least

LISALALA

Yeah I know what you mean. We had a roofing problem which caused water damage in the bathroom. This now needs re-plastering and new flooring, so thought might as well install a new (cheapish) suite to spruce it up. The kitchen is extremely small so shouldn't cost too much for a re-fit. The other big expense is going to be to re carpet every room.

If I thought a lick of paint would help to sell the flat, I would gladly take this option. Unfortunately there are 3 other flats for sale in our block of 10, one of which has been on the market for 2 years. So I was thinking at least if it takes a year or two to sell, at least we'll have a more comfortable home in the meantime!

Tixy

Consider getting an agent or 2 round for a valuation and then discuss with them how much more it would go for if you did the work you planned. Then you can make an informed decision on whether it is worth while both financially and in terms of effort. Putting in a whole new kitchen can be costly and if the new buyer doesn't like it they might put in another new once when they move in (which will affect how much they are prepared to pay anyway).

Then talk to your mortgage provider about the costs involved and whether they will extend the mortgage.
If you could reduce the amount you needed and have a good credit history you could also consider a 0% credit card, with the hope that you could sell and pay it off before interest became chargeable, that would work out cheap and ensure you don't have any settlement fees etc.

LISALALA

Yeah that's a good idea getting an agents opinion, I hadn't thought of that, thanks.

[Deleted User]

LISALALA wrote: »

Hi guys, this is the first time I've posted a thread, just need a bit of advice please.

My husband, toddler and I currently live in a two bedroom flat. We are wanting to move somewhere with some outside space for our little boy but are reluctant to put our flat on the market until we've spruced the place up a bit! (new kitchen, bathroom, carpets etc)

We currently have around £27000 and 12 years left to pay on our mortgage. We have guesstimated that we will need around £5000-£7000 to bring our flat up to the standard required to get a good price back when we sell.

After checking all the comparison sites, it seems as though the cheapest rate we'd get on a loan is going to be around 8.5% APR, which is roughly the same sort of rate we could get on a cheap standard rate credit card. The other option we are considering, would be to increase our rather small mortgage which is currently at the Halifax standard variable rate of 3.5% APR.

I haven't spoken to Halifax yet, so am unsure at this time whether this option would incur any admin charges etc.

Any advice would be greatly appreciated.

we are in a simlar situation,mortgage outstanding 28k and needing to borrow 10k.our small but perfectly formed building soc.has suggested they could offer a secured loan at 4.79%(fixed for 3 years)their SVR is 4.99% so if we go ahead with this it would be a great deal,the admin fee will only be £100,with no valuation required and no solicitors fees.