Is it worth remortgaging?

jonnyb1978

We have £40000 left on existing mortgage over 19 years. In Januray the discount period of the mortgage runs out and the payments will increase about £60 a month to a total of approx £310.

Now the house needs a considerable amount of work doing to it and the remortgage will pay for this.

1. Full Re wire
2. Front block paved as its a mess now.
3. Junk room modernised and with existing external door bricked up and windown put in.
4. New Kitchen.
5. Also to pay off some existing debts that will free money up to afford extra mortgage.

These are the main jobs with small ones along the way. Im looking to get £20000 and keep the 19 year term which should increase payments by approx £200 a month at present. (£140 more in January if we kept existing deal).

Obviously this work will increase the value of the house and we would not be looking at moving for at least 4/5 years as the house would be complete.
Is it worth it with the house prices slowing down etc etc.

Without the work i would find it hard to live in.

ponsmort

My first question would be how much the house is valued at now and how much you anticipate it being valued at once the work has been done.

It is worth contacting a mortgage broker approximately 8 weeks prior to your rate expiring in order to secure yourself a new deal regardless of whether you do the work - no point paying over the odds!

jonnyb1978

In my opinion from a limited cnstruction background i would say now its valued at at least £110000 and will add a further £20000 once all work is complete. These are conservative figures and i would hope it to be worth in region of £140000

ponsmort

In that case I would say yes - contact a good fees-free broker to make sure you get the best deal

jonnyb1978

Thanks for the advice