Mortgage dilemma renewal due in November! Twins on the way!

Paul_T_Newby

Hi, I am hoping to get some valuable advice on what we should do regarding our mortgage renewal?

Our five year fixed rate currently at 4.9% is due to expire in November (house valued at aprox 120K with 86k to pay)

Our main dilemma is we have just found out my wife is pregnant with twins and as our house is only two bedroom we are going to need to have an extension built at some point!!

We will need to have the cost of the extension added to our mortgage (aprox 30k) as we would prefer to extend than move as we are really happy where we are. (Would lenders allow this much to be added to an existing mortgage?)

Do we go for it now in November or just renew the mortgage for another two year then look at the option of getting the extension and adding the cost to the mortgage then?

As the interest rates are currently extremely low I know it may be better to do it now, but also its not a good idea to have a big building project going on while my wife is pregnant.

But if in two years the interest rates have gone up, the monthly payments could be astronomical


Any advise suggestions would be very welcome.

Thanks Paul Newby

iamana1ias

Why will you *need* an extension just because you're having twins? Have you not heard of bunk beds? They cost a lot less than £30k .

iamana1ias

BTW,you won't get an extra £30k on your mortgage without paying a fortune. Decent rates die out at about 80% LTV

opinions4u

Paul_T_Newby wrote: »

Our five year fixed rate currently at 4.9% is due to expire in November (house valued at aprox 120K with 86k to pay)

Key information needed: Who is your lender and what rate will you be paying if you take no action (e.g. SVR, tracker etc).

Our main dilemma is we have just found out my wife is pregnant with twins and as our house is only two bedroom we are going to need to have an extension built at some point!!

But it doesn't have to be done immediately, does it?

We will need to have the cost of the extension added to our mortgage (aprox 30k) as we would prefer to extend than move as we are really happy where we are. (Would lenders allow this much to be added to an existing mortgage?)

Yes. Subject to all the usual underwriting that they do. A £30k extension will typically add £20k to a property value. Such a major prooject may need you to have a pool of available cash to pay the builders with prior to lender releasing funds.

Do we go for it now in November or just renew the mortgage for another two year then look at the option of getting the extension and adding the cost to the mortgage then?

Two babies can easily be looked after in one bedroom. My two boys survived in one bedroom with little difficulties until one was into his mid-teens.

As the interest rates are currently extremely low I know it may be better to do it now, but also its not a good idea to have a big building project going on while my wife is pregnant.

But if in two years the interest rates have gone up, the monthly payments could be astronomical

Personally I'd wait and see. If the twins are same sex twins you'll probably never have a problem with them room sharing.

I'd sit back and see how things develop. This also means getting a feel for how the country recovers from recession and how secure your jobs are going forwards. I'd do nothing for a couple of years.

Paul_T_Newby

Thanks for the quick replys.

Our motgage is currently with Nationwide and if we choose to do nothing and let it fall on to the tracker rate it will be currenty at 2.50%

which is a good decrease from the current 4.9 we are currently paying

foreversummer

IMHO I'd sit tight, overpay by the amount you are saving and enjoy the twins!

dimbo61

With the drop in income once your wife is on mat leave I would pay the normal mortgage payment at 2.5% and put the extra into savings for the twins expenses

Paul_T_Newby

Thanks all,

think everyones opinion is what i was thinking - but helped me reasure it was the right thing to do and wait a few years and see where we are.

million dollar question but is the general opinion interest rates will deffinatly start to go up with in the next year?

thanks again