What would you do? Support needed...

Timpanum

Hello everyone,
I'm faced with a decision and wonder if some of you might comment on what you would do in my situation. I'll tell you my thoughts - please feel free to comment or suggest other alternatives.
Thank you in advance....

Current position ...
I have a £69k mortgage at 4.74%, monthly payment £420
I have Ccard debt at £1,775 on a 0% deal (part financing of my car to get monthly cost down) which I pay off at £125/ month.
Car finance at £3,800 at 15.9% PSA finance which is £220 per month.
I have £8,000 in savings from PPI last year in high interest account which I want to use to redo my bathroom and mend a couple of leaks on my house. £2000 of these savings was given to me by a friend specifically for my bathroom so I feel it cannot be touched except for that.
Current situation...
I've wanted to remortgage my house for a long time because the interest rate is way too high but unfortunately my loan to value percentage has precluded me from doing this. Over the last two or three years I have been really paying this down and have achieved an LTV of about 85% now so remortgaging is now an option.
I went into a well-known Building Society just to get some figures today and basically on my current situation they can only lend me £44,000 which was disappointing. If I didn't have the credit card debt or the car then they could lend me £77000 and I could slash my remaining term from 22 years to 15 years and do do pay roughly the same each month about £40 more.
My thoughts....
Pay off the credit card and car finance with the savings which will leave the £2k intact.
Remortgage the house reducing the term from 22 yrs to 15yrs (£460/month)
Get a bank loan to finance the bathroom and leaks, plus the £2000 I still have, given I would have £300 available each month because I wouldn't be servicing the card or car finance anymore.

All this to happen after covid19 as I'm self employed and if I have to self isolate I might need the savings!!! 

Thank you for reading! 
Timps

Timpanum

Ps probably need to say that if you suggest something, I do it, and it's a disaster, I won't haunt you!! Ha ha xx

bexster1975

Hello

I'd be inclined to sit tight right now. Interest rates cut this am will likely help if you are on a SVR. In addition, your savings may yet be needed as you are self employed ( as I am). If any leaks are urgent, I'd get them fixed. Otherwise I'd wait for coronavirus to do its worst. After that I might pay off CC and car loan. Rather than getting a loan for the bathroom, put the £300 a month extra to one side in a high(er) interest account for 18 months if your bathroom will last that long.

Good luck

Bexster 🙂

Timpanum

bexster1975 said:

Hello

I'd be inclined to sit tight right now. Interest rates cut this am will likely help if you are on a SVR. In addition, your savings may yet be needed as you are self employed ( as I am). If any leaks are urgent, I'd get them fixed. Otherwise I'd wait for coronavirus to do its worst. After that I might pay off CC and car loan. Rather than getting a loan for the bathroom, put the £300 a month extra to one side in a high(er) interest account for 18 months if your bathroom will last that long.

Good luck

Bexster 🙂

Thanks for commenting Bexter - I appreciate your insights. The leak is only an issue when I use the bath - so I don't! But I love my baths so I'd like to get it sorted.
I saw the interest cut this morning - wonder how long it will take to filter through to us at the mortgage end of things.
Timps

Sistergold

Timpanum said:

Hello everyone,
I'm faced with a decision and wonder if some of you might comment on what you would do in my situation. I'll tell you my thoughts - please feel free to comment or suggest other alternatives.
Thank you in advance....

Current position ...
I have a £69k mortgage at 4.74%, monthly payment £420
I have Ccard debt at £1,775 on a 0% deal (part financing of my car to get monthly cost down) which I pay off at £125/ month.
Car finance at £3,800 at 15.9% PSA finance which is £220 per month.
I have £8,000 in savings from PPI last year in high interest account which I want to use to redo my bathroom and mend a couple of leaks on my house. £2000 of these savings was given to me by a friend specifically for my bathroom so I feel it cannot be touched except for that.
Current situation...
I've wanted to remortgage my house for a long time because the interest rate is way too high but unfortunately my loan to value percentage has precluded me from doing this. Over the last two or three years I have been really paying this down and have achieved an LTV of about 85% now so remortgaging is now an option.
I went into a well-known Building Society just to get some figures today and basically on my current situation they can only lend me £44,000 which was disappointing. If I didn't have the credit card debt or the car then they could lend me £77000 and I could slash my remaining term from 22 years to 15 years and do do pay roughly the same each month about £40 more.
My thoughts....
Pay off the credit card and car finance with the savings which will leave the £2k intact.
Remortgage the house reducing the term from 22 yrs to 15yrs (£460/month)
Get a bank loan to finance the bathroom and leaks, plus the £2000 I still have, given I would have £300 available each month because I wouldn't be servicing the card or car finance anymore.

All this to happen after covid19 as I'm self employed and if I have to self isolate I might need the savings!!! 

Thank you for reading! 
Timps

Hello 
best sit tight and don’t get any loans. Not good to not have savings at anyone point. Why not just switch product with current lender after civic as they will probably not do an affordability check that way you reduce interest rate and start paying off debt. 

Moneyfordreams

ooo, what ifs
I would phone current lender and see if I could get a better deal as Sistergold said. It may not be the most perfect but it would likely be better than your current rate. You may have to lock into the product for 2 years though.

Personally I would pay off the car loan and save the savings and keep the cc as a cheap loan. You wound still have a >£4k bathroom fund. Getting tradesmen may be a bit tricky, so bathroom will possibly be months away. I'm panning a kitchen later this year so using this time to save a bit more. We have steady incomes. If you are worried about covid and income loss of earnings I would just do the mortgage until you feel safe financially.