Is it wise to borrow further on morgage as deal coming to an end in Jan 14?

pennypinching77

I have been in a 5.19% fixed deal with the Halifax for nearly 5 years it ends in Jan 14.
I have never missed a payment and have no other debts.
I need to sell the property my house which does need work doing to it.
It has access to the only bathroom through a bedroom which is putting off potential buyers. It was fine for me when I bought the property as I was single. Am now married and living in Husbands flat.s

We want to add another toilet/shower and merge the dining and kitchen area. It's turned up some damp and with Council fees things are starting to stack up.

We have some savings but would also need to take out a loan to do some of the work.
I think my mortgage would come down to about £740 a month in Jan, it is currenly £838 once the fix is up but then I could go with another lender and rates seem to be lower.

In January I will still owe 125k the property is possibly worth 225k
This may seems like a simply quandry to some readers but I really need to get shot of the property asap as desperately need more space, so don't know if we can hang on til Jan.

What would you do please.

dotdash79

You should be able to get a deal to take the borrowing down quite a bit.

I did 125k on 85% LTV at the start of the year and I'm paying 600 pm over 25 years.

You are looking at a 60% deal so you might be able to pay around £550 per month based on 20 years remaining. You would more than likely be allowed to borrow extra for home improvements.

amnblog

You could consider a 2nd mortgage (secured loan) or depending on the figures a personal loan could do the job.

Or you could raise extra with Halifax if you are OK with also using them for your new purchase.

Get yourself some advice from an independent mortgage broker.