MN wisdom required -would you take a loan, or remortgage for this? ive got a headache....

[ThatVikRinA22]

i need the wisdom of MN.....

we have some home improvements which need doing to the tune of about £9000, some of it is desperate, asbestos garage is falling down, bathroom leaks...defo needs doing. Rest of house is done and totally refurbed

we presently have 2 loans, one finishes within the next few months, the other 18 months later. They cost us £365 combined.

we cannot decide whether to add the 9k to our mortgage, so that when the loans are paid off we have a bit of a buffer, we could save, buy a new car (ours is now 10 years old and does alot of mileage)

or
to wait until the loans are all paid off, and then take out another loan, keeping our mortgage the same as now.

we do have equity, but not a huge amount (currently we have about 30k equity)
the thing holding us back from remortgaging is that at some point over the next few years we may decide to sell and move.....however, to do that, we would need to make these improvements - cant sell with a leaky bathroom and a falling down asbestos garage......)

what would you opt to do?
im all for remortgaging, then saving the money we would save on the loans, possibly even over paying the mortgage to get it down again.....

but its giving me a head ache. I need help from those savvy with money (which i arent....)

advice would be gratefully received....thankyou!

Pay off the expensive loans and replace with the cheaper mortgage providing the mortgage arrangement fee is not too expensive.

well the remortgage would not replace the loans, but would prevent taking out new ones when the old ones are gone.....means that we would pay £56 more a month on the mortgage but be £357 a month better off when the loans have gone.....

I would remortgage, especially if moving is more of a 'in the next few years' scenario rather than something imminent.

What is the mortgage arrangement fee? That is what will tip the balance. Also will they lend to you?

I would remortgage but overpay otherwise the 'cheap' mortgage could end up costing you more than a loan over the full term.

thats what i thought mrs - when the loans are gone i could overpay by quite a bit.

yes they will lend - already checked that out and got quotes etc - the arrangement fee is £250, no legal fees at all.