Remortgage advice for desperately needed home improvement

mylifemyrules

Hi,
My little boy has ASD and we desperately need to make some adaptions to our home for him. We have a mortgage and our property is worth 202000 and we owe 130000 would it be possible to remortgage to release enquity to do our home improvements? Have a few months of fixed rate left. Is there enough equity? We want a part garage conversion so probably looking at needing around 18k. 

mylifemyrules

Meant to add we have 4000 saved but would take too long up save more. 

sammyjammy

Have you looked at what your new rate might be when that fix ends and whether you can afford to borrow another £18k at that rate?  Do you have earnings to support that lending? do you have any non mortgage debt?

mylifemyrules

No other debt. We wouldn't be overly comfortable but it would be doable. We'd borrow 14k because we have 4000 saved. Income is 38000 

housebuyer143

You should be able to do a further advance, which is essentially another mortgage but for the extra, changed at the new current rates. 

Give your current lender a call and they can advise you. 

TadleyBaggie

mylifemyrules said:

Hi,
My little boy has ASD and we desperately need to make some adaptions to our home for him. We have a mortgage and our property is worth 202000 and we owe 130000 would it be possible to remortgage to release enquity to do our home improvements? Have a few months of fixed rate left. Is there enough equity? We want a part garage conversion so probably looking at needing around 18k. 

Hmmm. Two months ago you had £35K to invest and £95K mortgage. So how did £35K get added to the mortgage in such a short time?

ManekiNeko

Before considering borrowing more against your home, take a look at Disabled Facilities Grants offered by councils. This is a grant to help you make needed adaptations to your home.

Or, if you struggle to find what you need, try a specialist organisation like Scope who might be able to talk you through your options, or the grant search feature on Turn2Us I think it is. Anyway, my point is, there are grants out there and in your shoes, I'd want to investigate them very thoroughly before contemplating the risk of additional borrowing, especially in this economic climate.

mylifemyrules

TadleyBaggie said:

mylifemyrules said:

Hi,
My little boy has ASD and we desperately need to make some adaptions to our home for him. We have a mortgage and our property is worth 202000 and we owe 130000 would it be possible to remortgage to release enquity to do our home improvements? Have a few months of fixed rate left. Is there enough equity? We want a part garage conversion so probably looking at needing around 18k. 

Hmmm. Two months ago you had £35K to invest and £95K mortgage. So how did £35K get added to the mortgage in such a short time?

The 35k in question was not all mine it was inheritance from family split between siblings and the other mortgage relates to a property my family own not mine. 

K_S

mylifemyrules said:

Hi,
My little boy has ASD and we desperately need to make some adaptions to our home for him. We have a mortgage and our property is worth 202000 and we owe 130000 would it be possible to remortgage to release enquity to do our home improvements? Have a few months of fixed rate left. Is there enough equity? We want a part garage conversion so probably looking at needing around 18k. 

@mylifemyrules

As your current LTV is 65% and you require less than 20k (taking you to no more than 75% LTV), you should have no issues with hitting any LTV caps. Whether or not your income/outgoings can support a total mortgage size of around 150k will depend on the numbers. All lenders will be fine with raising capital for home-improvements.

If your fixed rate is coming to an end then it's worth exploring the whole of market for the most cost-effective option available to you. The MSE guide here can help you find a whole of market broker https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3 , good luck!