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Remortgaging advice, please!
vase
Posts: 27 Forumite
Hi all, advice appreciated on options (as I see them) below:
Siutation: My family moved into a new house, bought at £205k in November 2014, mortgage of £193,675 (I think!), just under 95%. The house was bought in my name because my partner had an old bad entry on his credit file. This November, our 5.79% rate ends so I need to remortgage, adding my partner (clean now), so we can get a better rate. Some good ones out there that would reduce our £1094 per month mortgage quite a bit.
Since we bought the house we have done quite a bit: knocked down walls to make a really big open plan kitchen which is completely finished; new Worcester combi boiler; new electrics; cosmetics. We are about to start converting part of the garage to a utility and downstairs toilet and the front to a little study with access from the hallway. We'll then build a big shed down the side of the house for usual bike, lawnmower storage etc. We also hope to knock through into a small bathroom to make an ensuite, but no new suite etc for quite some time.
Similar houses nearby have sold for £250k. So, I'm hoping that in November, out LTV will be below 80% so we can get a good deal.
To do the kitchen, I took out a £15k loan (settlement is £12300) and bought the kitchen on BNPL, £6200 due in July and will have to go on a credit card which we will then attack.
So, what I'm asking is how I should approach this... I'm getting a bit restless with stuff to do and have considered the below options:
1. Take out a new loan to pay other and card, and to finish the utility and small room downstairs. Remortgage for just the amount we need.
2. As above, but remortgage to clear the new debt, all in the mortgage.
3. Leave as is, remortgage and continue paying 1. debt as per agreement.
4. Leave as is, remortgage and continue paying current debts as now.
I know that 1 might be a pain when getting a mortgage as I will have recently taken on new debt? But, doing 1 would mean that we could finish some stuff, get a better LTV and thus a lower rate or the ability to borrow more at a better rate.
Many thanks for reading such a long and tedious message! Your advice would be most appreciated
Siutation: My family moved into a new house, bought at £205k in November 2014, mortgage of £193,675 (I think!), just under 95%. The house was bought in my name because my partner had an old bad entry on his credit file. This November, our 5.79% rate ends so I need to remortgage, adding my partner (clean now), so we can get a better rate. Some good ones out there that would reduce our £1094 per month mortgage quite a bit.
Since we bought the house we have done quite a bit: knocked down walls to make a really big open plan kitchen which is completely finished; new Worcester combi boiler; new electrics; cosmetics. We are about to start converting part of the garage to a utility and downstairs toilet and the front to a little study with access from the hallway. We'll then build a big shed down the side of the house for usual bike, lawnmower storage etc. We also hope to knock through into a small bathroom to make an ensuite, but no new suite etc for quite some time.
Similar houses nearby have sold for £250k. So, I'm hoping that in November, out LTV will be below 80% so we can get a good deal.
To do the kitchen, I took out a £15k loan (settlement is £12300) and bought the kitchen on BNPL, £6200 due in July and will have to go on a credit card which we will then attack.
So, what I'm asking is how I should approach this... I'm getting a bit restless with stuff to do and have considered the below options:
1. Take out a new loan to pay other and card, and to finish the utility and small room downstairs. Remortgage for just the amount we need.
2. As above, but remortgage to clear the new debt, all in the mortgage.
3. Leave as is, remortgage and continue paying 1. debt as per agreement.
4. Leave as is, remortgage and continue paying current debts as now.
I know that 1 might be a pain when getting a mortgage as I will have recently taken on new debt? But, doing 1 would mean that we could finish some stuff, get a better LTV and thus a lower rate or the ability to borrow more at a better rate.
Many thanks for reading such a long and tedious message! Your advice would be most appreciated
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