Taking extra borrowing when remortgaging

[Hopefulmama21]

We are due to remortgage soon, our rates are going up but will still be affordable (just very annoying).

I have been dreaming about having our kitchen revamped for a few years now and have had a quote for new cabinet doors and worktops for just under 9k.

I have done a cost calculator and worked out if I asked for extra borrowing when we remortgage it will cost roughly £65 per month over the intial term - a lot more in the long run I know.

Would it be a bad idea to do this? I see people using remortgaging quite frequently to do home renovations and I'm unsure if this would be an okay thing to do in our circumstances.

LTV would remain under 70% with the extra borrowing. Equity is currently around £170k depending on valuation.

We increased borrowing to do some renovations as well but you pay a lot more than you would if you took out a loan for that amount. We increased the DD after a while (when we could afford to) to try and reduce the cost of that. You pay interest over the length of the mortgage, so you may end up paying a lot more than what you would pay if getting a loan. If you cannot afford it in any other way, I guess yes go for it. It will likely increase the house value and will make your lives more comfortable or happier. But if you could stretch yourself to either saving, paying a loan, or a combination of those instead, I'd consider that instead. There must be an online calculator somewhere to tell you how much would the total cost of a £9,000 loan at X interest, how much the total cost of your current mortgage at X interest, and how much the total cost of your mortgage plus £9k at X interest. I would start there and see what's the actual cost, not just the cost per month. Also check how much it would be if rates were to increase.

@JediNinja thank you that's helpful info. I think if we overpay as planned by £100 per month, then within 5 years we should have roughly paid the 9k back and be back at the original level of equity we started with.

I need to check that again properly but I've used a calculator on money saving exert so assume it's fairly accurate.