to remortgage or not?

beckstar1975

Try to be quick - trying to remortgage to release come equity to pay off debts, do a loft extension and significant works.

House value (as per mortgage co £420K), outstanding mortgage £125K - until £2036

Monthly income - £6k
Monthly debt repayments - £2k
Mortgage and other outgoings - £2k

We did need to urgently create a new bedroom but have turned dining room into combined bedroom/office which is working well enough.

So, do we remortgage for £300K at 5.74% - ie £2k a month for 5 years - NO overpayments required - this would pay off mortgage, debts and give us £125k to get works done

Or, move onto fixed with our lender, batten down the hatches and pay down some of the debts and try again in 18m or so's time - we're currently applying with Kensington as declined by high st due to high debt utilisation

I just feel really twitchy about consolidating our debts as my health is not great, our current mortgage is fine on one salary , new one less so should the worst happen with our jobs or I have to give up work for my health, is this how it feels when you take on a lot of mortgage? We're both 47 btw

Thanks