Overpaying on mortgage VS Renovation

[Redkeosndlqod]

Hi everyone, first time in posting on here. Would be greatful of the advice!

We moved into our 1930s house 3 years ago. We have overpaid around £25,000 in that time. Our house needs renovating, but we don't know when is the right time to do it.
Renovation wise - we would need to rewire, new plumbing, knocking a wall down, new kitchen bathroom etc.
We have worked out with overpaying we will have around £45,000 left on the mortgage in three years time.

What would everyone do? Pay the mortgage off potentially in the next 5 years then get a loan for renovating. Or renovate now, by getting a loan?
Would the loan affect when remortgage? / Would the mortgage affect how much we can loan from the bank?

Thanks in advance!

I would do the renovation as prices will only go up. It sounds like major disruption, would you be able to live in the property whilst the works are being done?

No, we would probably move into the partners mum and dad's. We don't know whether to add onto the mortgage (which we would feel so bad after working hard to overpay) or get a loan. But with a personal loan we potentially would have a large monthly pay out.

In your position I would get a quote for the work and instead of overpaying the mortgage put that money to the building works.

I would renovate if you plan to. We could have put off renovating our house for 5 years and paid off mortgage but I want to enjoy house...

When does your mortgage deal end? At that point you’ll be able to see how much is left to pay. You can then see if it’s worth taking out another mortgage for more is owed, to factor the renovations - or not. If the interest rate on the new mortgage deal is better than that on a loan, it makes more sense to add to the mortgage.

If you are having to borrow to renovate you are usually better off remortgaging as that is the cheapest way to borrow.

Thus do it now and remortagage unless you are in a fixed deal in which case tie it in with that ending.

The sooner you renovate the sooner you can enjoy the benefits! Overpaying the mortgage is great but is a luxury.

As another another poster said, finding people to do any building work is tough and the backlog is likely to grow rather than shrink.