Best Way Of Raising Money for Home Improvments?

PrincessTaylor

Hi all,

Looking for a bit of advice,

Current Mortgage £41,000, approx Current Value of Home £50,000.

We are still tied to a fixed rate for another 3 years but desperately need to raise money for improvements to the house (family getting bigger).

We are extending up (building a whole new roof) and although we have all the relevent permissions in place to start work we are looking for advice on the best way of raising the finance.

Personal loans are out of the question as we have quite a lot of other personal debt which is under control but leaves very little disposable income.

Looking for monthly payments around £520 per month (same as current mortgage)

Guessing at value of house afterwards £70,000 - £80,000

Our biggest issue is if we remortgage with current lender (hoping they waive the redemption penalty) their current interest rates are quite high. If we go elswhere then we will be stung with early repayment fees!

Any Help?

JoeK_3

Contact your existing lender and ask them for a further advance.

The further advance facility should already be built into your exiting mortgage.

JoeK

PrincessTaylor

Would getting a further advance not mean a higher monthly payment?

Our original mortgage was for ten years (eight remaining) thats why the payments are so high.

My kind of thinking was that if we go elsewhere we can extend the repayment time and therefore have a bigger mortgage for around the same monthly payment?

The work is gonna cost about £20,000 altogether thats also where i think we have difficulty. The final value will without a doubt exceed what the work costs, but the value without the work is very poor as i said (about £50,000)

PrincessTaylor

just a little *bump*

absolutebounder

You have a choice really either go for a further advance or a secured loan