Remortgage to help free up cash??

scampitandnemo

Hi folks, looking for some advice and opinions on an idea myself and my husband have had to help sort out various cash issues!!

We are due to remortgage in september ( currently have £73k mortgage on a £170 k house with 15 years remaining )

due to me loosing my job, and suffering from severe depression i have wracked up a cc bill of £3k. I am now well on the mend, credit cards cut up, but still hating the debt we have. also my car has broken down ( quote over £1k to repair ) as has by husbands ( quote £1500 to repair ).

these are old cars and to be honest the cost of fixing exceeds their values!

as we live in the middle of nowhere we need 2 cars , my husband to get to work 20 miles away and me to get the kids to school 12 miles away.

Our idea was to up our mortgage by £12k, to pay off debt and buy two newer cars with lower tax, more reliable etc.

We couldnt afford loan payments for that amount but it would only up our mortgage by £30 a month. Now i understand that longterm the interest would be higher, but we were considering a 2yr fixed rate for now on the basis that in 2 years our youngest will be at school so will be able to do more towards the mortgage ( upping the payments to get it down faster ).

I would just like your honest opinions as to whether you think this is a good idea. to us it seems the ideal solution but i know we can have a habit of only seeing what we want sometimes.

many thanks for your time

Thrugelmir

scampitandnemo wrote: »

We couldnt afford loan payments for that amount but it would only up our mortgage by £30 a month.

Doesn't solve your problems as you are merely refinancing your debt over 15 years, and buying cars that most likely will also require replacing again before the 15 years is up.

A simplified view of the approach lenders will take. Releasing equity provides the answer not the solution.