Pay mortgage or redecorate

Goleo

I currently have 99,500 outstanding on my mortgage. Apart from the deposit I haven't paid anything off since moving in 4 years ago. I've just been paying the interest. After having a lodger for the last year or so I have managed to save just over £3000. Should I use this money to pay off some of the mortgage or do some much needed work on the house. My current lodger is moving out this month so it would be an ideal time to do a bit of diy/decorating in the house. (Mainly the upstairs as there are not enough plug sockets, the plaster is crumbling off one wall and the bathroom is dire.) It would also help sell the spare room to future lodgers.

Twiddy

Hi Goleo

It depends entirely on what your priorities are. You could share the cash out between mortgage and decorating i.e. by contacting your mortgage provider and asking to go onto a repayment mortgage. That way, you will start to pay your mortgage down on a monthly basis, but still have the capital behind you for decorating.

If you feel you can still live with being on interest only for a longer period then put it all for decorating!

Cheers
T

ultrarunner

If your strategy over the next few years is to have lodgers then I would look to make the improvements now - plaster crumbling off the wall sounds bad and I know how bad it is to have a dire bathroom. Has the lodger explained the reasons for moving out, could it be these issues? It sounds like you should get the improvements done sharpish whatever the decision.

One other consideration, if you are on a fixed rate, when does this expire and could you be in difficulty if the value of your property has dropped below the loan amount?

lulabelle1

Depends how badly the house is in need of decorating.........

collen

Apparently the situation given is really tough and you will likely choose what's the right step to do. For me it would be appropriate if you pay your mortgage before doing the decorating, your mortgage might be in a unstable state that you should consider paying it.