Forum Home» Mortgages & Endowments

Is a mortgage the right option for me?

New Post Advanced Search

Is a mortgage the right option for me?

edited 28 May at 12:30PM in Mortgages & Endowments
12 replies 351 views
Emz1987Emz1987 Forumite
27 posts
Part of the Furniture 10 Posts Combo Breaker
edited 28 May at 12:30PM in Mortgages & Endowments
Hi everyone, i'm sorry if this is in the wrong section, I hope you can help me.
I bought my first home in May last year and I'm in the extremely lucky position that I was a cash buyer and own my home outright. However, it needs completely updating and a new kitchen putting in along with a few other things. Its been suggested to me that the best way to raise funds for this work is to get a mortgage but the idea scares me when im currently living mortgage free! Also, I'm not very clued up on mortgages and all the ones I look at are for people buying homes, not people who already own homes or they're for people who currently have a mortgage. I've never had one! I've done some basic calculations and around 30k should cover the work required but a loan for this amount is very expensive! Can anyone offer any guidance?

Thank you in advance! 
«1

Replies

  • SistergoldSistergold Forumite
    330 posts
    100 Posts First Anniversary Name Dropper Photogenic
    ✭✭
    It is really a wonderful position you are in that you own your home. Could you not pretend to be paying a mortgage and save the money to do the renovations? Maybe only borrow a little to do the urgent works? If house is in a liveable state you could just wait a few years or do room by room. I wish I could buy my house outright. 
    This probably does not answer your question 
    Initial mortgage balance £487500,
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽‍♀️),
    Target is to pay it off in 10years(by 2030🥳). 
    MFW start April 2020 mfw#136
    £12K in 2020 challenge #148
    To save £100K in 48months start 01/07/2020 @£5200SoFar
    Am a single mom of 4. 
  • DensolDensol Forumite
    406 posts
    100 Posts First Anniversary Name Dropper
    ✭✭
    A £30k mortgage with rates as they are will be peanuts ( well compared to mine thats 10x that amount ) 
    Id rather live my life in a nice property, not make do with a house that needs work just to be mortgage free 
    Have a look at your finances and see mortgage calculators how much the mortgage would be. Then see where you can recoup that money as you may find you waste lots of money of buying crap 
  • kingstreetkingstreet Forumite
    36.3K posts
    Ninth Anniversary 10,000 Posts Photogenic I've helped Parliament
    ✭✭✭✭✭
    It's a remortgage of an unencumbered property.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • edited 29 May at 5:53PM
    NatalieAGCNatalieAGC Forumite
    72 posts
    10 Posts Name Dropper
    edited 29 May at 5:53PM
    I would say get 30k on a mortgage now. It can be paid over number of years to suit you. It’s the best time now, the rates have never been as low!! 
    Much cheaper than a normal loan rate.  

    Bite the bullet 👍🏼
  • Emz1987Emz1987 Forumite
    27 posts
    Part of the Furniture 10 Posts Combo Breaker
    Thank you for the replies, they've proved very helpful. Now to start finding the right mortgage 😄
  • Mickey666Mickey666 Forumite
    408 posts
    100 Posts Name Dropper
    ✭✭
    I’d say the real issue here is whether to live debt-free and save up for a new kitchen or whether to borrow the money and get a new kitchen sooner rather than later.  Since we don’t know the OPs circumstances it’s not easy to offer advice.  If the OP is in good, secure employment then an affordable loan would seem perfectly sensible.  If the OP’s employment is not so secure and or income is variable then taking on a debt may not be such a good idea.
    Having said that, once a decision is made to borrow, a mortgage is undoubtedly going to be the cheapest method.
  • edited 2 June at 11:31AM
    fewcloudyfewcloudy Forumite
    372 posts
    Eighth Anniversary 100 Posts Photogenic Name Dropper
    ✭✭
    edited 2 June at 11:31AM
    It is really a wonderful position you are in that you own your home. Could you not pretend to be paying a mortgage and save the money to do the renovations? Maybe only borrow a little to do the urgent works? If house is in a liveable state you could just wait a few years or do room by room. I wish I could buy my house outright. 
    This probably does not answer your question 
    Must be a contender for worst advice of the week and it's only Tuesday...
    Yeah let's all pretend to be paying a mortgage and save the money to do the renovations, what could possibly go wrong?  There is no need to lie here, it will be straightforward.
    Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester", 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...
  • Emz1987Emz1987 Forumite
    27 posts
    Part of the Furniture 10 Posts Combo Breaker
    I would love to be able to save the money to do the house and while it is livable, it needs a new kitchen and boiler and possible rewiring. It would take us a long time to save this when a mortgage is likely only going to be around £200 a month.

    I'm 33 and my husband is 36. I am employed full time (currently furloughed) and my husband is self employed so we're looking at a 20 year mortgage of 40K. I think this is do-able and as much I hate to think of having a mortgage hanging over me, its still a very fortunate position for me to be in. Particularly as I would have had to get a much larger mortgage anyway just to get onto the property ladder! Inheritance has allowed me to buy my home outright and renovating it will increase its value quite significantly so it all seems to make sense. 
  • Mickey666Mickey666 Forumite
    408 posts
    100 Posts Name Dropper
    ✭✭
    fewcloudy said:
    It is really a wonderful position you are in that you own your home. Could you not pretend to be paying a mortgage and save the money to do the renovations? Maybe only borrow a little to do the urgent works? If house is in a liveable state you could just wait a few years or do room by room. I wish I could buy my house outright. 
    This probably does not answer your question 
    Must be a contender for worst advice of the week and it's only Tuesday...
    Yeah let's all pretend to be paying a mortgage and save the money to do the renovations, what could possibly go wrong?  There is no need to lie here, it will be straightforward.

    Why is that bad advice?
    I read  'pretend to be paying a mortgage' as putting aside 'imaginary mortgage' repayments each month into a savings account until the OP had saved up enough to pay for a new kitchen outright, thus maintaining their current mortgage-free status.
    No lying involved at all . . . or have I misunderstood?
  • fewcloudyfewcloudy Forumite
    372 posts
    Eighth Anniversary 100 Posts Photogenic Name Dropper
    ✭✭
    Mickey666 said:
    fewcloudy said:
    It is really a wonderful position you are in that you own your home. Could you not pretend to be paying a mortgage and save the money to do the renovations? Maybe only borrow a little to do the urgent works? If house is in a liveable state you could just wait a few years or do room by room. I wish I could buy my house outright. 
    This probably does not answer your question 
    Must be a contender for worst advice of the week and it's only Tuesday...
    Yeah let's all pretend to be paying a mortgage and save the money to do the renovations, what could possibly go wrong?  There is no need to lie here, it will be straightforward.

    Why is that bad advice?
    I read  'pretend to be paying a mortgage' as putting aside 'imaginary mortgage' repayments each month into a savings account until the OP had saved up enough to pay for a new kitchen outright, thus maintaining their current mortgage-free status.
    No lying involved at all . . . or have I misunderstood?
    In which case it is I that has misunderstood, my apologies.
    Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester", 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support