come and talk to me about mortgages- please!

[ThatVikRinA22]

would you take out a loan to pay off part of your mortgage so that you could get a more favourable interest rate on the mortgage?

i had my house valued today. as it stands, when we remortgage the loan-to-value isnt great, but if i took a loan of 7k, i could get a loan to value of 75%, which massively reduces the cost of the mortgage as you can get much better interest rates.

is this something that anyone else has done? or would consider doing?

i had my heart set on moving, but there isnt really enough equity in the house to put down a big enough deposit - our mortgage payments would really skyrocket, so now am in two minds.

could easily stay put and improve. wwyd?

Difficult one. The risk is you see that your loan cripples you and yet because you think you have more money to spend you overextend and then struggle.

Personally I'd wait six months, do up the house for sale (to get more money for it when you do sell/make it more liveable with now) and see what happens in the economy. Things will get better but I reckon it'll be a good two years before property really starts picking up.

Of course in some senses for that reason it doesn't matter, you get less, you pay less.

Incidentally, don't base your judgement on ONE valuation - get three.

cheers.

i had 3. all came in at £135 - £140. my house is done up, nothing more i can do except in the garden, but the agents all said if i spend more on it now i wont get it back, so putting a conservatory on wont increase the value apparently!

dunno what to do.

option 1 was to stay put, spend a bit on the garden, re-do bits and pieces, decorate, buy a few bits of furniture for DDs room and gernerally make it really nice.

option 2 was move to another property of the same value, fairly new build which had 3 storeys and was internally bigger, but we would lose the garage and alot of garden space, and as most of our kitchen appliances are built in and the bedroom furniture is built in we would need to buy new furniture to boot.

option 3 was to go to a brand new build, but seems out of reach - mortgage would be £900 per month and that scares me.

we just dont really have enough of a deposit to get a gread deal on a mortgage. so im stuck i think.

why cant i ever decide on anything!!!!