New mortgage

[mortgageadvice123]

Our mortgage rate is coming to an end soon so we will be looking to remortgage. Our circumstances have changed quite abit since we got our previous deal. I am now working just part time, had DD, pay for child care and DH has a car on finance and saving for home improvements.Whilst we can still afford our mortgage all this is making it abit tight. I would also like to save more because we really need a new kitchen.
My question is when we go to remortgage to lower the monthly cost would it go against us to ask for all of the following in one go. One to extend the period we pay over. Two borrow just a couple of grand on top for house improvements and three also have a better rate (I think we would get this anyway as we would now owe less than 80% of house value.)

If youv re-rate online with same company they don't do another credit check or anything so won't need to know about change in circumstances.

I've just done it as we have a baby now.

If you go for whole new mortgage they may not be willing to lend you enough if earnings have lowered so may not lend you enough to afford the house

Thanks @Lazypuppy not too concerned about this as the bank was willing to lend us nearly double what we borrowed. The reason it's abit too much for us now is because we did it over 10 years hence high payments.

See a broker and they will talk it through, its perfectly reasonable to extend the term given the circumstances even to 15 years is still a relatively short term mortgage but will make a difference. (It will also cost you more over the term of the borrowing- broker will explain this fully)

If you’ve just had a baby then you’re most likely under 40? And just had a mortgage over 10 years to be mortgage free relatively early but now it’s causing a bit of a squeeze?

If my presumptions are right, then you can easily extend the mortgage over 25+ years. With improved LTV, your monthly repayments are likely to be less than half the current ones so you could take a view if you need more equity for the kitchen or if you’ll just save up for it really quickly.

We’ve always had mortgages over maximum terms so that the monthly direct debit doesn’t look too big. However, vast majority of residential mortgages can be overpaid by up to 10% of outstanding balance every year. The overpayments can be weekly, monthly, annual or completely ad hoc. If you do that, you’ll still be mortgage free quite soon but without the burden of high monthly repayments.

Something else you could consider if you have a reasonable disposable income is to use some of the savings you have to reduce the mortgage required and then look at separate interest free credit for your kitchen.

Ikea do this and also their kitchens are excellent quality for the price.