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Original poster

Increasing our mortgae

13 replies

WatchWatch · 17/02/2021 18:43

I posted in chat to canvas a range of views.

Our house needs some significant renovation, some basic, some more significant. We are considering increasing our mortgage from 17% of our take home to 22.5% which is a fairly significant jump. We can afford it but it would be tighter than we're used to.

The money would be used to add a kitchen extension (including downstairs loo and utility) replaster large parts of the house, replace the currently unuseable second bathroom and replace the boiler.

Should we do it? We've both got stable jobs.

OP posts:
Original poster
WatchWatch · 17/02/2021 18:46

Obviously I'm not going to make a decision solely based on Mumsnet comments but I'm interested in people's thoughts.

OP posts:
sneakypetesgrandmaisace · 17/02/2021 19:53

Will it change the length of your mortgage?

Will it increase the interest rate on your mortgage?

After the work has been done, do you see it as your forever home or are you looking to move at some point in the future? If so, roughly when?

Is the amount that you are going to spend on this work less than the value that the property would increase by? Less relevant if it is a forever home.

2ndAugust · 17/02/2021 19:58

Will it increase the value sufficiently to warrant spending it? Our mortgage is 30% of our take home but we have no others debts or expensive habits so it’s fine.

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General money
Gogglebox20 · 17/02/2021 20:00

If you can afford it, are staying long term and feel it will benefit you then do it! X

Original poster
WatchWatch · 17/02/2021 20:27

Will it change the length of your mortgage?

No

Will it increase the interest rate on your mortgage?

*This portion would be at 2.65%, the rest would remain at 1.9%. if we do it now the 2 would run out of their 'deal' period within 1 month of each other so could be consolidated in 3 years.

After the work has been done, do you see it as your forever home or are you looking to move at some point in the future? If so, roughly when?

Not until DC2 is in the very, very local secondary, so at least 9 years.

Is the amount that you are going to spend on this work less than the value that the property would increase by?

Possibly not quite but it's hard to tell as the houses on the street are very varied, ours is one of only a dozen (in a 100 house street) with a drive and 1 of 3 with a garage and garden.

OP posts:
Original poster
WatchWatch · 17/02/2021 20:29

Our only other debt is my student loan (will be repaid in 4years) and a sofa but that'll be paid off in June, we could pay it off now as there's only £400 left on it. No credit card debt and we own our car.

OP posts:
sneakypetesgrandmaisace · 17/02/2021 20:31

In that case, if you can afford it and it will improve your quality of life enough to justify it then I'd definitely go for it

sneakypetesgrandmaisace · 17/02/2021 20:38

Another question, sorry. I'm just thinking about what I'd ask myself.

Where will the extra money that you will be paying on the mortgage come from I.e. the difference between the 17% and 22.5%...

Does that money currently go into savings, or do you overpay the mortgage, or will you actually have to reduce your expenditure?

Original poster
WatchWatch · 17/02/2021 20:41

Technically it currently goes in to savings, but we're quite bad at saving- I used to be brilliant but as our disposable income has increased, I've got lax. It won't be difficult to find the extra, we currently buy waaay too much crap and we have already cut down massively (which has paid of DHs student loan 12 months early).

OP posts:
sneakypetesgrandmaisace · 17/02/2021 20:43

I know the feeling Grin if you're confident that you can afford it without too many sacrifices then go for it. If not then try living off the lower amount for a few months and see how it goes. Good luck!

CocoPark · 17/02/2021 20:47

I would, OP. You can afford it and it'll improve your quality of life for the next 9 years.

Original poster
WatchWatch · 17/02/2021 20:57

It will massively improve our quality of life. The current kitchen is just about bearable, no drawers as they're all broken, nowhere near enough cupboard space, the floor is badly scratched and warped, the washing machine doesn't open fully as there isn't enough room. It's a 70s/80s kitchen so well beyond its natural lifespan! In the rest of the house some of the walls have blown plaster and mould from penetrating damp (source fixed, remedial work now needed).

We've already done loads of work - rewire, new central heating system minus boiler, new master bathroom, repointing and decorative stuff.

OP posts:
user1471538283 · 17/02/2021 21:55

I would. My mortgage is going to increase when I find my next home to buy. Quality of life is so important.

If you are happy then it is worth it!

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