I need advice with remortgage options

12bdebt3

My girlfriend and I purchased our current house for £140,000 (as first time buyers using her 10% deposit, so the house is split 55/45) on a 5 year fixed rate 2.3% mortgage with Nationwide building society. The house is a liveable although a little dilapidated; being nearly 100 years old and built on over an abandoned mining area (no subsidence on the survey but we get quite a lot of cracks in the house and it’s quite uneven). A lot of properties on our street have recently sold for £180,000 and aren’t in much better condition than ours so we got a decent price. We have some debt and nursery fees to pay but all of that will be over by the time our fixed rate mortgage term is completed, and even with the debt and dependent the bank initially offered us a mortgage of up to £200,000. My intention was to live in this house forever, I’m 30, mortgage will be paid in my mid 50’s and I can retire early. However I’m impatient and not completely satisfied with the house and want a lot of work doing to it. I’ve estimated the cost to be in the region of £40,000 to £50,000, maybe more for contingency. So this begs the question, do I get a 2nd mortgage or loan of some sort when all my debt and nursery fees are complete? Or do I sell the house at a profit, and then go 50/50 in the new house? I just want advice on what my options are. What mortgage I should get if I plan to move. The practicalities of moving in terms of my mortgage and what fees I’d have to pay and what profit I could likely get. Whether it will be too expensive to have a large loan and a mortgage, would it work out cheaper to have that extra debt in the mortgage for a bigger house? I think our house is valued at around £170,000 so that would be £30,000 profit which just seems too good to be true and how can I make the most of that?

Unicorn_cottage

12bdebt3 said:

My girlfriend and I purchased our current house for £140,000 (as first time buyers using her 10% deposit, so the house is split 55/45) on a 5 year fixed rate 2.3% mortgage with Nationwide building society. The house is a liveable although a little dilapidated; being nearly 100 years old and built on over an abandoned mining area (no subsidence on the survey but we get quite a lot of cracks in the house and it’s quite uneven). A lot of properties on our street have recently sold for £180,000 and aren’t in much better condition than ours so we got a decent price. We have some debt and nursery fees to pay but all of that will be over by the time our fixed rate mortgage term is completed, and even with the debt and dependent the bank initially offered us a mortgage of up to £200,000. My intention was to live in this house forever, I’m 30, mortgage will be paid in my mid 50’s and I can retire early. However I’m impatient and not completely satisfied with the house and want a lot of work doing to it. I’ve estimated the cost to be in the region of £40,000 to £50,000, maybe more for contingency. So this begs the question, do I get a 2nd mortgage or loan of some sort when all my debt and nursery fees are complete? Or do I sell the house at a profit, and then go 50/50 in the new house? I just want advice on what my options are. What mortgage I should get if I plan to move. The practicalities of moving in terms of my mortgage and what fees I’d have to pay and what profit I could likely get. Whether it will be too expensive to have a large loan and a mortgage, would it work out cheaper to have that extra debt in the mortgage for a bigger house? I think our house is valued at around £170,000 so that would be £30,000 profit which just seems too good to be true and how can I make the most of that?

Are you and your partner both on the same page about doing lots of work?

12bdebt3

Unicorn_cottage said:

12bdebt3 said:

My girlfriend and I purchased our current house for £140,000 (as first time buyers using her 10% deposit, so the house is split 55/45) on a 5 year fixed rate 2.3% mortgage with Nationwide building society. The house is a liveable although a little dilapidated; being nearly 100 years old and built on over an abandoned mining area (no subsidence on the survey but we get quite a lot of cracks in the house and it’s quite uneven). A lot of properties on our street have recently sold for £180,000 and aren’t in much better condition than ours so we got a decent price. We have some debt and nursery fees to pay but all of that will be over by the time our fixed rate mortgage term is completed, and even with the debt and dependent the bank initially offered us a mortgage of up to £200,000. My intention was to live in this house forever, I’m 30, mortgage will be paid in my mid 50’s and I can retire early. However I’m impatient and not completely satisfied with the house and want a lot of work doing to it. I’ve estimated the cost to be in the region of £40,000 to £50,000, maybe more for contingency. So this begs the question, do I get a 2nd mortgage or loan of some sort when all my debt and nursery fees are complete? Or do I sell the house at a profit, and then go 50/50 in the new house? I just want advice on what my options are. What mortgage I should get if I plan to move. The practicalities of moving in terms of my mortgage and what fees I’d have to pay and what profit I could likely get. Whether it will be too expensive to have a large loan and a mortgage, would it work out cheaper to have that extra debt in the mortgage for a bigger house? I think our house is valued at around £170,000 so that would be £30,000 profit which just seems too good to be true and how can I make the most of that?

Are you and your partner both on the same page about doing lots of work?

Hi yes, we need a new bathroom and kitchen, she wants to knock a wall down to have a bigger kitchen instead of our office/storage room. I want a conservatory to replace the office. The back patio needs repaving also, and there is a brick wall between the patio and the drop to the grass in the garden that needs rebuilding. We have horrible outdated fitted wardrobes that we both despise in all 3 bedrooms so they will all need ripping out, and the whole house needs plastering and decorating. We have discussed at length and both agree on all the work that we want doing. Her parents have a property abroad in France so our intention is to give a builder the keys and a list of work and hopefully get as much as possible done while we go on holiday, if we go down the renovation over relocation route.