How do i remortgage to fund repairs?

Robin81

Hi,

My Husband and I currently own (mortgaged with Nationwide) an older 2 bedroom semi which is having some issues with condensation.

We think we need to have our pointing repaired and replace our exterior doors, which are not in great condition, to stop the problem but who knows perhaps there are more issues lurking as seems to be the case with older houses!

Anyway we are expecting a baby in September which means we are very keen to have the issue sorted so we can re-decorate and know the baby's health (and our own) won't be at risk but having a baby means we are tight on money!

We're fairly naiive when it comes to mortgages and remortgages and so i wondered if anyone can help advise the pros and cons of remortgaging and when it is possible to do. I'm assuming this means higher monthly repayments too.

We're currently on a fixed deal until 2013 and I am certain its not the greatest rate as our LTV I think was only 85 or 90%.

I'm thinking our next step could be to get a quote for the work we need to check the amount of the repairs and then possibly approach our existing lender to see what's possible and get an illustration?

Any advice very welcome!!

beecher2

If you bought fairly recently at 85% or 90% then your LTV is probably too high to allow additional borrowing and you'll need to raise the money another way. Go onto Debt Free Wannabee for help with your budget in order to start saving.

Robin81

Hi,

Thanks for your reply. Looking at our last statement I estimate the current LTV is probably 85% so i think you are right - a re-mortgage is not an option to release equity.

Our mortgage rate is shocking at 6.33% fixed until Nov 2013 and looking around I see there are much better deals for 2 year fixed or tracker at 85% LTV. Is it always madness to leave a deal within the fixed rate period or can it actually pay off to move and incur the early redemption fee?

Thanks!

ACG

Its not ALWAYS madness to pay the redemption fees, work out what your paying now, what the redemption fee will be and what you will save between now and when your redemption fee would finish - if its not much then your probably best waiting as interest rates could rise, if its a lot then it may be worth looking at.

Robin81

Thanks.

Could you help me work out what the saving would be? I would need to calculate it over 2 years.

Thrugelmir

What's your exit fee? Your mortgage documents will state an ERC (early repayment charge) normally as a %.

Robin81

Thanks for your help guys.

I think looking at the latest statement and with the imminent arrival of baby that we are best riding it out and saving through other means.

Luckily we've had some people look at the work and they believe its not as big an issue as we first thought which is a relief!

peakoil_2

before you do anything no need to pinpoint why you have condensation. I can categorically tell you that bad external pointing has nothing to do with internal condensation.

condensation in a house occurs when warm moist air hits a cold surface, the moisture in the air returns to water. You get rid of condensation by making sure your house is well ventilated (so the water vapour can get out of your house) and by making sure your house is well heated and insulated so that there are no cold spots for vapour to condense.

Get a surveyor in, not a builder and find out what the problem is. doing remedial work such as pointing and replacing doors/windows without knowing the underlying cause is not only a waste of money but it could end up sealing your house up more and making the problem worse not better.