Help with Mortgage and debt.

Happy new year all,

I wandered if anyone could help me here as we're really stick with what to do. Myself and my wife bought a new build apartment 3 years ago. We had one child at the time. (We have since had a second. The flat is big and at present we have plenty of room. However, over the next couple of years we would potentially need to upside as the girls grow older and need seprare rooms (there is a 6 year age gap).

We bought the flat for 173k with a help to buy equity loan. We had a 13k deposit at the time. Our current mortgage is 124k +the equity loan. The online manage my mortgage on natwest currently values the apartment at 206k, others have sold for around 198k recently.

When we bought the flat we were both working bringing in about 40k between us. We had about 40k worth of debt at the time too. We managed to get a fixed rate of 1.8 percent which we were happy with.

We managed to get our debts down to about 30k before covid but at the beginning I lost my job at the time our second daughter was born too.  Fast forward to now, the debt has gone back up to about 35k and my wife is not working due to child care. I'm back earning 33k.

What we are hoping to do is remortgage and release the equity in our flat to pay off our debts as they currently cost us about 1k a month. 

Is this even possible while we have the help to buy. If not what is our best bet here to get us in a better financial situation. My wife will start working again in September so this will bring in some extra income then. our currebt mortgage rate is up in June.

Happy to take on any advice.

Thanks all


  • The general ‘rule’ is to not convert sort term debt to long term debt.  For two main reasons:

    Although the internet rate is probably lower you are paying it over a longer term such as 30 years rather than say 5
    it also doesn’t address the spending or budgeting that has caused the debt to build.

    How is your debt structured and how much interest are you paying? Do you think you could over pay once your wife is back at work?

    congratulations on the new job.  Sounds like a stressful year! 
  • Thanks for the reply, yes hopefully this will be the case, most of the debt is low interest so it will be going down over the next few years. 

    Loving my new job, but it is in aviation so still quite an uncertain industry.

    Happy new year to you too
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