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Remortage time - builder payed deposit - paying it back?

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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!

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
    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?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • 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
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    How much do you estimate your house is worth now?
    poppy10
  • around 145k
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