Remortgaging for new kitchen?

MikeL93

I’m looking at completely renovating my kitchen as it is currently falling apart. The only issue is I would know the best way to go about funding it.

Would remortgaging be the best way to go? I am currently 2 and a half years into a 5 year fixed mortgage, the interest rate is 3.03%. I did the deal for this mortgage literally the day before interest rates in this country went crazy. If I remortgaged would I have to move to a different mortgage with my current lender and therefore a higher interest rate or could I just add on the amount of the renovation onto my mortgage, so I’d be adding on £10,000 for example?

I’m really unsure what’s the best course of action here so any help would be appreciated. 

jonnydeppiwish!

What the Early repayment charge (EPC)? Remortgage that early would be quite expensive. I’d advise saving the money and purchasing once you have enough money in the bank 

dinosaur66

if money is tight and i am guessing best rate you can get will be 5.5% on a loan and i am guessing higher on a remortgage i personally would just do the best refurb you could do yourself if your diy skills are average it is a easily dooable job to get to a very reasonable standard

i have the tools already  but going on a small family home kitchen 10 by 10 then flooring /3 kickboards /16 kitchen cupboard doors 600s/400s/300s / 4 panel ends / 4 carcases for the bad ones / 3 wooden /laminate worktops /sink /taps/paint old handles /two 8 foot splashbacks for going over old tiles and boxing in pipework of boiler guess / paint for walls /skirting/radiator /ceiling// kitchen entry door /upvc back door /bag of hinges

i used to flip property but 2016 was my last flip and i paid £1500 back then from howdens so £2.5k now i would guess /

Grenage

Borrowing more would likely incur an early repayment charge and put your mortgage on a higher rate.  This is a money-saving forum, so nobody is likely to recommend such. 

Your best option might be to make do with what you have and put money aside for the kitchen.

GDB2222

You really need to ask your lender and then do the sums, but …

If I guess you have a £200k mortgage for example, the ERC could be £2k, and you could end up paying an extra £4-5k a year in interest. 

I don’t want to suggest doing without, but it’s going to be costly , whatever you do. You could approach your bank for an unsecured loan. Even at 15% interest, say, that’s likely going to be cheaper than disturbing your current, very favourable mortgage. 

powerspowers

Are there any interest free deals on kitchens? We did that and saved up over the interest free period and paid off at the end. It was a few years ago and total borrowed was around 4K as we did get some of eBay and fitted everything ourselves, so your mileage may vary!
it’s worth being creative though, do you need to replace all the carcasses or just doors and handles? What can be spruced up and what can you get for cheap off ebay/FB/asking about. People replace perfectly good kitchens all the time! 

Extending your mortgage is likely to be an expensive way of doing things. 

SootySweep1

Hi
We extended our mortgage to renovate our kitchen. Effectively we had a second mortgage running alongside our original mortgage.
Jen

twopenny

When you say 'falling apart' how badly?

There's so much you can do to renovate a kitchen on the cheap and still have it looking good.

I've been looking online (the same way I did for garden and room inspriation) to see what ideas were out there.

Seems a shame when you have a good mortgage deal that you've only just started to make your situation worse.

And remember, it's unlikely to add value. If you do sell whoever buys will want to do it their way.

Albermarle

 I did the deal for this mortgage literally the day before interest rates in this country went crazy.  back to the historical average, after a period of being abnormally low. 

Just worth noting in your planning that it is unlikely that interest rates will go back to where they were pre Covid, regardless of what happens in the economy, government etc.