Remortage time - builder payed deposit - paying it back?

woodface91

When we bought our house 2 years ago the builder payed the deposit, this was interest free for 2 years. Unfortunately the 2 years are up, so we either pay part or all of it back or start paying them the interest on their loan.

So what is the best way to tackle this, can we remortage up and pay some of this loan off?

cheers!

Tixy

Whether you could remortgage would depend on your house value now compared to your outstanding mortgage. Its quite likely that your house won't have increased enough in value to be able to remortgage.

How much do you owe the builder? what interest rate do they charge? How much can you afford to pay off straight away (do you have any savings?), how much can you afford to pay on a monthly basis on top of your other commitments?

woodface91

no, the house has decreased in value. Our mortgage was for 75%, builder payed 25% (40k at that time)

Any lump sum we pay off now will be from the 25% of what the property is worth now, however interest is at 4% of original 40k

Not much savings to throw about either sadly.

poppy10_2

How much do you estimate your house is worth now?

woodface91

around 145k