Extending Mortgage - Am I mad?

Firefly

My house is worth £250k, I earn £22k + child benefit + CTC. Since my divorce I am supposed to be "using my best endeavours" to release my ex from the terms of the mortgage (58k outstanding) but as I've only earned enough to do that in the past 2yrs or so, I've chosen to pay off all my debt (and the debt he left behind). He is nowhere to be found and hasn't had contact for 8yrs.

I consider myself to be financially secure in so much as I haven't got debt, can pay all my bills and we don't have a bad lifestyle although it isn't indulgent and I watch the pennies and don't have holidays, etc but are comfortable.

When I moved into this house there was work that needed doing but as I was soon managing on my own it hasn't all been done although a lot has as I got a renovation grant to help. I've got a large conservatory with a roof that leaks and doors that don't shut; my bathroom is in dire need of updating and replacing; my kitchen is in a sorry state.

Would I be mad to remortgage not only to release ex from mortgage (in name only I hasten to add as I own the house) and borrow a bit extra to do the necessary repairs? Am I just trying to convince myself this is a good idea so I get a nice house to live in?

I've got 16 yrs left on the mortgage and I'd love to pay it off earlier than that but I've probably not got the best deal.

I can't claim to have a perfect track record for debt (thanks to state ex left finances in) but my credit report now looks good!

Any ideas anyone? I'd welcome advice.

JoeK_3

Firefly wrote: »

My house is worth £250k, I earn £22k + child benefit + CTC. Since my divorce I am supposed to be "using my best endeavours" to release my ex from the terms of the mortgage (58k outstanding) but as I've only earned enough to do that in the past 2yrs or so, I've chosen to pay off all my debt (and the debt he left behind). He is nowhere to be found and hasn't had contact for 8yrs.

I consider myself to be financially secure in so much as I haven't got debt, can pay all my bills and we don't have a bad lifestyle although it isn't indulgent and I watch the pennies and don't have holidays, etc but are comfortable.

When I moved into this house there was work that needed doing but as I was soon managing on my own it hasn't all been done although a lot has as I got a renovation grant to help. I've got a large conservatory with a roof that leaks and doors that don't shut; my bathroom is in dire need of updating and replacing; my kitchen is in a sorry state.

Would I be mad to remortgage not only to release ex from mortgage (in name only I hasten to add as I own the house) and borrow a bit extra to do the necessary repairs? Am I just trying to convince myself this is a good idea so I get a nice house to live in?

I've got 16 yrs left on the mortgage and I'd love to pay it off earlier than that but I've probably not got the best deal.

I can't claim to have a perfect track record for debt (thanks to state ex left finances in) but my credit report now looks good!

Any ideas anyone? I'd welcome advice.

You need to get quotes for all the home improvement that you have planned, to find out how much you need and it can then be added to your exiting mortgage amount.

Once this is available the income multiple can then be calculated to see if it can be done and if it is affordable. If you do extend the mortgage term, will it be paid off before you retire?

There is of course the problem of getting your ex off the existing mortgage to consider.

Have you considered approaching your existing lender for a further advance for home improvements? They should also be able to extend the existing mortgage term.

JoeK

Firefly

There shouldn't be too much of a problem with getting the ex off the mortgage. It's a criteria of my divorce settlement and I've always informed the B/S of my circumstances and the fact he possibly lives in UAE and I can't locate him for maintenance, etc. He didn't even turn up at court!

I haven't yet approached my lender as I didn't want to rush in without considering all things yet but my gut feeling from previous conversations with them is that it would be OK. Three years ago they agreed to give ALL the mortgage to me but wanted to see two years of bank statements which I felt uncomfortable doing. The last year at least have been ALL in credit! I've had a good increase in income since then too.

PS Existing terms of mortgage will be paid off the month before retirement, if that's at 60! You don't really like to consider inheritance, etc as that seems a bit wrong but ..... it will possibly paid off before then.
We've got some nice builders renovating next door at the moment (see I'm not the only one!) and I'll ask them to give me a quote once I've listed what needs doing.

Is approaching current lender a better option than searching elsewhere? Nationwide have been nice to me so far!

PS under current terms of mortgage it will be paid off a month before my 60th. It feels a bit wrong thinking about inheritance but ... it could well be paid off before then.