Remortgage

[Jogrighton]

Hi all, looking for advice. I'm toying with the idea to extend my 3 bedroomed house by adding a single storey kitchen extension with utility/downstairs loo.

My mortgage fixed rate has ran out and I plan to borrow £70000. I have £80000 left to pay over 13yrs. I pay about £660 p/month. Looking at the remortgage calculator it will go up to about £1000.

I'm a single parent with two kids and nearly 50. Work full time 39k per year.

Am I being a twonk and should be happy with what I have or shall I risk it?

The kitchen diner we tend to use as a kitchen/lounge as it has a settee in but the dining table is squished in.

I know it's my decision ultimately but I have no partner to chat to so I thought I'd use you wonderful lot 🥰

Hmm it'd make it tight on your salary to have £150,000 mortgage agreed . If interest rates change it would cost more per month , they are low at moment

I would be nervous to do what you're suggesting, as a single parent of two , as not much wriggle room

Thank you

I'm not mortgage savvy tbh. I was thinking of increasing it to a period of over 15 years to reduce it somewhat, but I may have to rethink the amount as well.

I've not spoken to anyone yet, normally I go through london and country

Thanks again x

Have you had quotes for the extension and have you checked whether it will add a commensurate value to the property? If not those are the first steps to take. Also, £70,000 sounds like a lot for what you have said you want. On the mortgage front you may not be able to extend the length of the mortgage past your retirement age.

Thanks

I was hoping to eek it out to help for a patio and drive if there was much left over.

Lots of people have done them in the cul de sac and looking on zoopla seem to have increased their house price. To be honest I can't see myself moving, it's more comfort but it is my children's inheritance so I do want to do the right thing

Sorry missed the quote bit

No, I was going to remortgage, then architect, then builder.

I've read rule of thumb about 2k per sqm

Hi, I would definitely get a few quotes on what the costs actually would be. Things like shopping around for materials, doing things like painting will also bring the price down.
Also check what the houses in your area that are similar to yours and have added an extension are worth now.
If you can comfortable afford the increase in mortgage than I would be inclined to go for it.

You will have to watch with prices. Friend who is doing building work said his materials have went up by over £5000 in just over a month and a half. He is lucky he is himself a builder and gets it trade and only paying for materials. Can you not just redo kitchen diner without an extension? I would worry that interest rate could go up in a few years. Could you pay your mortgage at 6% or higher.
It was in double figures in the 1980s. I would really think it over. Do you have good insurance if you take ill? I would worry paying a pension until you retire as you have no wriggle room with that amount of mortgage.

I agree with other PPs

Whilst you can afford increase in mortgage monthly fees right now, it is based on very low interest rates. I'm a child of 1980s when I recall rocketing interest rates, redundancies and people losing their homes.

So- right now, given uncertainty globally and due to Brexit, all of which are unpredictable, I wouldn't be volunteering to increase my mortgage to do any unnecessary work to my house (which also could be delayed by pandemic restrictions and lockdowns materials or labour wise).

I'm not a risk taker with our home. I'd make do and change things around in the existing rooms you have. Even more important as you are a lone parent to DC relying in your wage alone which won't have much leeway if interest rates increase.

How much equity do you have in the house? And are you intending to stay there after the works are done or sell up within a few years?