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Katherine

My House

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my house is a 1970's semi and is getting to a stage where it needs some pretty major work.

It needs a re-wire

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months. I have a mortgage of 62k and the house is valued at about 140k for mortgage purposes.

Surely the cheapest way to fund the works necessary is by extending the mortgage than taking out unsecured loans? Even allowing for a rise in mortgage rates?

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my house is a 1970's semi and is getting to a stage where it needs some pretty major work.

It needs a re-wire

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months. I have a mortgage of 62k and the house is valued at about 140k for mortgage purposes.

Surely the cheapest way to fund the works necessary is by extending the mortgage than taking out unsecured loans? Even allowing for a rise in mortgage rates?

Yeh, I'd say go for it. You could get yourself a new car and a couple of holiday's too. :ph34r:

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my house is a 1970's semi and is getting to a stage where it needs some pretty major work.

It needs a re-wire

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months. I have a mortgage of 62k and the house is valued at about 140k for mortgage purposes.

Surely the cheapest way to fund the works necessary is by extending the mortgage than taking out unsecured loans? Even allowing for a rise in mortgage rates?

I'm not sure why you're asking. If your looking for funding to update your house, MEW (Mortgage Equity Withdrawal) is your answer - this is what MEW was traditionally for.

Are you asking whether you should do this or not?

Edited by Jason

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My savings will only cover part of the cost I'm afraid as they are going to be big projects. I think equity release will be the answer but obviously need to keep an eye on the situation at the moment with regard to rates. I think I know what I have to do but tend to be overly cautious regarding borrowing.

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Guest horace

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months.

Wot dat ????

h

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my house is a 1970's semi and is getting to a stage where it needs some pretty major work.

It needs a re-wire

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months. I have a mortgage of 62k and the house is valued at about 140k for mortgage purposes.

Surely the cheapest way to fund the works necessary is by extending the mortgage than taking out unsecured loans? Even allowing for a rise in mortgage rates?

If you don't have the cash to pay for it already, I don't think you have any better options than MEW. Just make sure you only draw down what you *really* need to do the renovations, and don't allow yourself to relax the budget and spend a bit more because you can "afford it" as there's plenty of paper equity in your house.

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my house is a 1970's semi and is getting to a stage where it needs some pretty major work.

It needs a re-wire

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months. I have a mortgage of 62k and the house is valued at about 140k for mortgage purposes.

Surely the cheapest way to fund the works necessary is by extending the mortgage than taking out unsecured loans? Even allowing for a rise in mortgage rates?

Why not wait until your mort#gage is up and borrow a bit more but kleep the term of the mortgage. Then OVERPAY the mortgage? You can get a secured loan against it but I reckon that may be 6.2% or higher.

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my house is a 1970's semi and is getting to a stage where it needs some pretty major work.

It needs a re-wire

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months. I have a mortgage of 62k and the house is valued at about 140k for mortgage purposes.

Surely the cheapest way to fund the works necessary is by extending the mortgage than taking out unsecured loans? Even allowing for a rise in mortgage rates?

Definitely is, but you don't have to take 140 just because they are trying to throw it at you.

Rewiring 5K. New bathroom 5K tops. New kitchen while your at it. 6K (and expect a masterpiece!). 2K for contingencies. The problem with MEWers is that they often have no boundaries when people start throwing money at them. The difference between a 140K morgage for 25 years and a 80K morgage for 25 years is around 45K in extra interest payments (or if you want to think of it in terms of available spending money, you will be less well off by 350 quid a month for the next 25 years.)

Borrow what you need and save for your holiday. that way, in the meantime the banks pay you for the savings rather than you paying the banks for your life.

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I would say have the wiring tested by a trustworthy electrician, unless you are selling it see if you can get away with just a new consumer unit to replace the fuse board..... 1970s wiring should still have plenty of life in it yet.....

Bathroom...... New tiles one side, re plaster and paint the rest.... New cheap white suite too if the existing one is totally nacked.... Again, get someone in you can trust and make do with what you can afford... You can have bathtubs re enamelled in situ though results will depend on who does it......

Cut a few corners and you can get the desired effect for about a grand or so.... Dont spend too much on crap though....

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Sorry should have made it clear. There is no way I will be borrowing to the maximum. I had budgeted that £14k should be more than enough to pay for the bathroom and outstanding payments on the kitchen plus the wiring.

I take your point about the wiring but to be honest the layout of the current plug sockets is impractical and restrictive and I want some new lighting so it seems to be a good opportunity to have it done. I reckon about 3k for the work

The kitchen was done last year - its in an extension which is only about ten years old and the wiring there is fine and has been checked.

Edited by Katherine

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I would say have the wiring tested by a trustworthy electrician, unless you are selling it see if you can get away with just a new consumer unit to replace the fuse board..... 1970s wiring should still have plenty of life in it yet.....

Bathroom...... New tiles one side, re plaster and paint the rest.... New cheap white suite too if the existing one is totally nacked.... Again, get someone in you can trust and make do with what you can afford... You can have bathtubs re enamelled in situ though results will depend on who does it......

Cut a few corners and you can get the desired effect for about a grand or so.... Dont spend too much on crap though....

Wow mate. You are really tight! OK leave out the kitchen (or save for it), you don't need it, and KW is probably right. Find out what you need to do, and don't take the first quote. Hes right about the bathroom. If there is no major plumbing needs doing you should be able to get it for a grand looking lux. White is definitely the colour if you want to be able to sell it at any stage.

Actually if it does only come out to a couple of grand, you could probably save for it anyway - you are about 100 quid a month better off if you have a morgage of 62K not 80. So it might be far easier and cheaper than paying your morgage setup costs again.

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Get a good honest electrician and he will show you the optimum locations for your sockets and go through all the pros and cons of moving them around..... Why spend all that borrowed money when you could get away with a couple of spurs for extra sockets..... A total rewire can lead to chaos in the house and lots of re decorating too.... Maybe an extra extension lead here and there will save you a packet......

Look at the possibilities of having just a trip board and running a new ring in the kitchen when you go for that...

you will more than likely have a cast bath..... Keep it if you can, plastic ones are crap...... Seriously, 150 quids worth of discount tiles and a good new plaster job on the rest and you wont recognise the room..... Plus you get to keep the room useable..... Drop some nice wood effect lino on the floor and enjoy.....

Kitchens tend to be expensive, i would advise new plaster all round, new strategic plumbing as required... free standing appliances and a minimum of basic good quality fitted wall units.... elsewhere try and implement catering style free standing kitchen units (stainless steel). May sound expensive but if you have budgeted 11K for kitchen and bathroom then £1or2k for some custom built stainless is nothing..... plus it will save you a packet in labour..... Again use discount tiles as splash backs, on new plaster these will be a pleasure to fix....

It is always about forward planning and not spending for the sakes of it...... If you budget £14K on day one you will need more before it is all done..... And you will probably find out just as the money runs out and your house is a mess......

£14k will cost you £20k in the long run.... And you will still be paying for it long after you even notice the work done.....

I totally refitted a 3 bed semi with less..... Including new 100m drive, re plastered half the house, new kitchen, consumer unit, bathroom, fascias, fences, £2K worth of carpets. Vertical blinds in every room......

The difference.... I refused to MEW and wanted to do the lot with the foresight of paying for it within 4 years....

I could have done just the bathroom and electrical work for £1400 (What it cost INCLUDING labour)..... The kitchen cost me less than a thousand to buy including £700 worth of cooker, a decent fitter should cost no more than that to put it together professionally... But next time im going for the stainless idea.....

Edited by keepwatching

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You are buying in to the debt culture. Why don't you save up and have the work done? Answer, because you could never save that much. What does this mean? The house was too expensive for you in the first place and you can't afford to improve it? Or maybe that tradesmen these days earn daft amounts of money making something as simple as re-fitting a bathroom a job that costs thousands - when you can buy a good suite for £500.00

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You are buying in to the debt culture. Why don't you save up and have the work done? Answer, because you could never save that much. What does this mean? The house was too expensive for you in the first place and you can't afford to improve it? Or maybe that tradesmen these days earn daft amounts of money making something as simple as re-fitting a bathroom a job that costs thousands - when you can buy a good suite for £500.00

Can't see the logic. She has a 62K morgage. If she can't afford a 62K morgage in the current climate she should be living on the streets. If they will give her 140 to MEW then she would be paying about 300 quid extra a month. Which means, that she has at least the capacity to save 300 quid extra a month. But definitely take the cheapest option that produces the quality you want so that you won't still be paying the last refurb off well past when you need the next refurb.

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my house is a 1970's semi and is getting to a stage where it needs some pretty major work.

It needs a re-wire

It needs a new bathroom

my thinking is my mortgage (25 year repayment mortgage) is due for review in eighteen months. I have a mortgage of 62k and the house is valued at about 140k for mortgage purposes.

Surely the cheapest way to fund the works necessary is by extending the mortgage than taking out unsecured loans? Even allowing for a rise in mortgage rates?

Not only is MEW the perfect & valid way to do the work you want to do, with a bit of research on rates, you may be able to extract the cash without changing your current payments.

You are probably paying the bank & BS standard of about 2% over the bank of england base rate. So you may be paying 6.5% now. You should easily be able to knock 1% off that on a variable rate and even more on a fixed rate. But I'd stay away from most fixed rate deals as they tend to revert back to the 2% over bas deals.

The moneysavingexpert website should help to explain this more & give you some rate options, but there are obviously lots of plaes to compare rates.

Once you remortgage at a lower rate, despite having a higher balance, you shouldn't have a higher payment. But the smart move would be to increase your payment anyway to decrease the length of time it'll take to repay it.

If you want to learn about electrics, buy a green book called the 'Electricians Guide to the Building Regulations'. It's written in fairly plain english and is completely up to date. You can use it to help decide whether your electrician knows what they're talking about. It costs £15 & is a bargain for the information that's in it. If your electrician doesn't have his own copy, he's not a very good electrician.

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Before you do anything consider what, if any value will be added to your house (especially if you are not certain of staying long term). Leaving out the emotional aspect it all comes down to ROI (return on onvestment). eg if you were to spend 10k to get back 5k more on sale - it's gonna cost ya. If on the other hand for a project of 10k you sell the house with 5k discount to cover "work needed" you have saved money. Also, whenever you have work done you (ie the contractor) will always find something else that also needs doing. When buying a house it's nearly always cheaper in the long run to get somewhere where the work's been done (properly) & you miss the hassel.

For your needs MEW is the best bet (but get the best deal out of whatever lender). Always get decent professional advice on what actually needs to be done. Watchout for the "dryrot cowboys" type of contractor who always find work that needs doing. Never ask a contractor & beware surveyors who have (behind -the-scenes) links to the local contractors. Personal recomendations are often worthwhile.

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My current payments on the mortgage are £340 pm at 4.19% and I can comfortably increase up to £500 pm still leaving room for a cushion in case of increase. I think the house is worth paying the money on; I could move on which is another option I thought of but the area suits me in terms of location and facilities.

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Not only is MEW the perfect & valid way to do the work you want to do, with a bit of research on rates, you may be able to extract the cash without changing your current payments.

You are probably paying the bank & BS standard of about 2% over the bank of england base rate. So you may be paying 6.5% now. You should easily be able to knock 1% off that on a variable rate and even more on a fixed rate. But I'd stay away from most fixed rate deals as they tend to revert back to the 2% over bas deals.

The moneysavingexpert website should help to explain this more & give you some rate options, but there are obviously lots of plaes to compare rates.

Once you remortgage at a lower rate, despite having a higher balance, you shouldn't have a higher payment. But the smart move would be to increase your payment anyway to decrease the length of time it'll take to repay it.

If you want to learn about electrics, buy a green book called the 'Electricians Guide to the Building Regulations'. It's written in fairly plain english and is completely up to date. You can use it to help decide whether your electrician knows what they're talking about. It costs £15 & is a bargain for the information that's in it. If your electrician doesn't have his own copy, he's not a very good electrician.

I am in shock!! TTRTR what a helpful post. Are you pissed?

TB

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If you want to learn about electrics, buy a green book called the 'Electricians Guide to the Building Regulations'. It's written in fairly plain english and is completely up to date. You can use it to help decide whether your electrician knows what they're talking about. It costs £15 & is a bargain for the information that's in it. If your electrician doesn't have his own copy, he's not a very good electrician.

To add, if your 'electrician' has already said you need a complete rewire sack him anyway.... Get somebody who is willing to 'help' with what you want to do.... It may be worth reading a bit about certain things but with electricity its one false move and you're out.....

I was fortunate enough that one of my best schoolfriends now has 15 years experience and didnt scare me by having to consult manuals about how to go about his proffession.....

What is the point in thinking of increasing your mortgage by 33% just to refurb a couple of rooms though ???? Is this just the usual 'feel good' factor about having too much equity kicking in, now it is time to waste some because you can afford it ??? Are you thinking of plasmas and holidays too ??

I would save my £160 a month until next summer, whilst lining up some real labourers who are good.... Then pay cash and keep it minimal..... Plan it out well first...... you will be at least £160 a month better off for the rest of your mortgage term, and that is much more important.....

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I wouldn't completely rule out an unsecured loan, you can get some pretty decent rates (<6%), and they are unsecured of course!

:)

You clearly have a problem understanding loans. Even a small debt to your corner store could result in your home being sold off. It all depends on how far the lender wants to take it.

Unsecured means nothing except a higher IR.

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My current payments on the mortgage are £340 pm at 4.19% and I can comfortably increase up to £500 pm still leaving room for a cushion in case of increase. I think the house is worth paying the money on; I could move on which is another option I thought of but the area suits me in terms of location and facilities.

Unsecured loan £8k 6.5% Fixed over 5 years £160 per month, should cover your requirements if you shop around, and get the right advise and people to do it for you. A loan with a slightly higher rate over a shorter period will save you money in interest.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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