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Remortgaging, part of mortgage is interest only

(2 Posts)
pinkbraces Fri 31-Mar-17 11:57:53

When we bought our house 10 years ago we couldn't afford to take the whole amount as a repayment so we took part repayment and part interest only. The higher amount was repayment. Fast forward 10 years and we are looking at doing some work in the house where we need about K20 and we are wondering the best way to deal with this.
House is currently valued at about £250K, our repayment part of the mortgage is now down to £82K and the interest only is £40K. We have 15 yeasr to go on the mortgage. We can remortgage and take some equity out and move the interest only part onto a repayment, but this increases our mortgage repayments by about £400 per month.

Alternatively we could borrow the money needed for renovation as a home improvement loand and then look to remortgage in about 5 years where we will move over the interest only part of the mortgage.

In 5 years time some of our current expenses will no longer be applicable so in theory we will have more disposable income as well as any pay increases.

I am going around in circles as to the best way so any advice would be most welcome.

delilahbucket Fri 31-Mar-17 22:52:17

If you can afford the payments get it all on repayment asap. The longer you leave it the more it costs you in the long run.
That said, only you know where your finances are going, although never rely on more money until it is in your hand. Can you see a mortgage adviser who will help narrow down your options?

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