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Should I up my mortgage?
mando_2
Posts: 55 Forumite
We are bit in a quandry at the moment and can't work out what is the best thing to do. Any opinons to help us mull this through would be good.
We bought our house in 2003 for £91,000 and ended up with a mortgage of £66,000 as we put all our equity from the last house down as a deposit.
Now, we hate the house, its a mid terrace and the cons outweigh the pros and we want to move. We could afford a mortgage upto £120,000 so long as our house sold for £110,000 (which it could do because the houses round here are priced higher and selling). But finding a semi in a good area for this amount has proved to be fruitless.
We have thought about taking an advance or remortgaging and releasing captiol of around £15,000 taking our mortgage upto £81,000. We would then use this money to upgrade the central heating, put a new kitchen in, add an additional velux in the attic and generally do the house up as rooms will need replastering. This would help us to feel better about the house and staying here.
But we are worried if we do this then if house prices slide we might end up in negative equity (and have been then, done that, and don't want to be there again).
Have you any thoughts about it?
We bought our house in 2003 for £91,000 and ended up with a mortgage of £66,000 as we put all our equity from the last house down as a deposit.
Now, we hate the house, its a mid terrace and the cons outweigh the pros and we want to move. We could afford a mortgage upto £120,000 so long as our house sold for £110,000 (which it could do because the houses round here are priced higher and selling). But finding a semi in a good area for this amount has proved to be fruitless.
We have thought about taking an advance or remortgaging and releasing captiol of around £15,000 taking our mortgage upto £81,000. We would then use this money to upgrade the central heating, put a new kitchen in, add an additional velux in the attic and generally do the house up as rooms will need replastering. This would help us to feel better about the house and staying here.
But we are worried if we do this then if house prices slide we might end up in negative equity (and have been then, done that, and don't want to be there again).
Have you any thoughts about it?
0
Comments
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what is it REALLY about your house that you hate? Would, by spending the money on the central heating, kitchen and putting in a loft conversation REALLY change your mind about the house?
My mum is not in a position to move to an area which she likes but has got the inside of her home exactly as she wants it so feels alot better than she used to.
If the answer to the question is no then I think you know the answer to the question.2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0
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