Home improvement finance
Hi,
I’d welcome any advice on my situation please. Sorry for the long post, I’ll bullet point as it may make it easier than me writing a novel !
I’d welcome any advice on my situation please. Sorry for the long post, I’ll bullet point as it may make it easier than me writing a novel !
Bought house in April 2018.
Always knew the house would need extending and improving.
Always knew the house would need extending and improving.
April 2020 remortgaged with a 5 year fix. Intended to overpay each month by £500 for 5 years, if this was successful then was happy to take out finance of £500 per month for home improvements.
To date, have easily been able to overpay.
My husband has been given a promotion at work, starting January 2022. This will give an additional 1000 take home each month, plus an additional bonus each April.
To date, have easily been able to overpay.
My husband has been given a promotion at work, starting January 2022. This will give an additional 1000 take home each month, plus an additional bonus each April.
He now wants to start the home improvements sooner than the five year plan.
The current mortgage is set to be repaid over 30 years so I want to continue to overpay so that I’m not 70 when the current mortgage is paid off.
We would like to borrow approx 100k
Some questions…
As we don’t want to be paying the loan for 30 years are we best to go outside of the mortgage?
are we best to continue over paying on the mortgage? or put this £500 towards paying off an external loan earlier, then divert funds back to overpaying on mortgage once loan finance is clear?
The current mortgage is set to be repaid over 30 years so I want to continue to overpay so that I’m not 70 when the current mortgage is paid off.
We would like to borrow approx 100k
Some questions…
As we don’t want to be paying the loan for 30 years are we best to go outside of the mortgage?
are we best to continue over paying on the mortgage? or put this £500 towards paying off an external loan earlier, then divert funds back to overpaying on mortgage once loan finance is clear?
Add the finance (if possible) to the mortgage and keep overpaying as much as we can to bring the loan and mortgage term down?
any other advice?
thank you
any other advice?
thank you
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Replies
Ultimately, you then want to overpay the most expensive debt.
It might be easier to re-mortgage and take capital out of the house and then overpay as much as you can afford.
Presumably the improvements will increase the value of the house.
Look to do the work in stages and save/borrow smaller amounts as you go.
Actual mortgage stating amount £75,150
Overpayment start date 1/3/23.
Starting balance £66,565.45
Current balance -£65,553.80