Mortgage free in 5 years

starnat2020

I was looking for some advice... I am in a pretty good position.  I bought my house when I was 20 for lowest asking price of £120,000. House prices in this area have sly rocketed. My neighbour bought the exact same house 5 years ago for £175,000. It is a well sought-after area, detached 3 bedroom house. The house needs work. Like new bathrooms. Kitchen. Windows. I was wondering if there is a way i can release some money from it to do these things as i can't wait another 5 years to get this stuff done. I work full time, I have about 5k of debt and would like a way to get money to fix up the house and pay off debts for credit cards etc. Does anyone have any advice. I am 36 with 1 dependent and a single mother. Thank you.

joshiesaunt

Most people would advise not remortgaging to pay off debt.  Maybe head over to the debt free wannabe section for more specialist advice?

starnat2020

I dont mind just paying off debts like i am doing just now but really want to add to value by doing windows etc

csgohan4

starnat2020 said:

I dont mind just paying off debts like i am doing just now but really want to add to value by doing windows etc

Bare in mind spending X on a house will not always increase the value by X

https://forums.moneysavingexpert.com/discussion/6191576/natwest-end-of-fixed-mortgage#latest

dimbo61

At the same time you have lived in the house for 16 years and unless you took out an Interest only mortgage will have paid off some of the capital.
So how much do you owe ?
How much is the house worth in the current condition ?
How much do you earn ?
What are you paying in mortgage payments and what rate ?
I hope you can remortgage to another lender and borrow a little more to clear your debts and get the works done

starnat2020

It is not interest only. I owe roughly 25k. The house in current condition is 160k. I am paying £550 pm at 3.4 per cent. 
I earn 28k a year 

starnat2020

And also it is not for me to sell. It is a forever home.

dimbo61

So why not pop down to a couple of local DIY stores Wickes, B &Q, build base, etc and maybe specialist kitchen and bathroom fitters and get quotes for a new kitchen & bathroom.
Check out a couple of local double glazed window firms to get quotes from them for new double glazing throughout including new front and rear doors if needed.
Ask family and friends who they have used before. Don't go mad a £30K kitchen in a £160K house will not add £30K value.
Now at 36 you can get a mortgage till your 67/68 so a 30 year mortgage is possible however I would say 20 years should be the Max !
Do you want to pay a mortgage till your 60 ?
Next you need to check your current lenders website and see how much they will lend to you with your income.
Maybe seeing a whole of market mortgage broker would be worth while.
They can search the whole market and find you a suitable lender and best deal.

dimbo61

PS 3.4%is expensive in the current market.
Consider an offset mortgage so you can borrow extra to pay for the renovation works in stages.