I am finding my repayments difficult to pay and the house needs some work.

Posted on 12 February 2008

Hi Katie,

My home is worth £250,000 and I have a mortgage of £85,000. I am finding the repayments very difficult and the house needs some work. How can I best use my equity? I am 47 years old and working.

At the moment, if your mortgage payments are difficult to cope with, then you shouldn't borrow any more.

However, monthly affordability is the key thing here.  It all depends on your current rate and what the resulting mortgage payments are.  If you are on your lenders SVR then you should be remortgaging to a better rate anyway, and then use the better rate to increase the loan amount, so the mortgage payments only go back up to what you are used to.

There are strategies for reducing your mortgage payments, http://www.charcol.co.uk/knowledge-resources/ask-katie/category/mortgage-payments/ but they all come with their own risks, so consider carefully before you borrow any more.

Best of luck,

Katie

Category: Lower mortgage payments

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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