Re-mortgage to get funding for upgrade ?

[askaboutairgead]

Hi everyone , am a newbie so forgive all typos etc
I need a about 8 thousand to do up the house .
I bought it as a student house 8 years ago i.e no storage , only 3 presses in the kitchen, old cooker etc but it was fine as I didn't want to borrow again for a few years .Now I need a cooker , proper heating and storage.
Here's the background:
Age 53
Income : permanent but part time teacher , 29K gross p.a , increments each year , pension
Relationship with bank: Three years ago I had a few 'meetings' with the bank over a year re impending arrears but managed to prevent that happening with a fairly bullish approach to my rights regarding a promised tracker rate.Everything has settled down now , I'm on the blessed tracker ( tho it still takes half my net wages per week i.e 210 out of 430) and I need a bit of cash to finally get a kitchen/heat etc.
Other debts :Credit union is a not an option because I am servicing a loan ( currently 7K) for a car .
Thought I might approach the bank ( no other loan options ) to get one good loan .What do you think ? Will they try to leverage the tracker off me ?

 

[elcato]

What are you paying the CU given that you only have 220 a week left ? Look at it this way, the bank will look at your income and see you only have about 150 a week left after current outgoings. You would be a high risk and no chance will they lend you the money imo. Have you got shares in the CU you could use to drop the amount owing to them ? For now save a few bob and buy a cooker and worry about the heating after you have the carloan paid off.

 

[Monbretia]

I don't think you have a chance, your mortgage repayment alone is 50% of your net monthly income which is way over any guideline the banks have and that's not even taking into account your credit union.

If you were to remortgage and take out a brand new mortgage for more money (which to be honest is a non runner) it would likely to be at new mortgage rates. If the bank were to give you a top up loan to the existing mortgage, the existing mortgage would remain at tracker rate and the new top up loan would be at new rates. This is just to explain the different way this can be done but realistically you are above your limit already.

Only chance at all would be to try the credit union to re-fi the car loan to include extra for the house repairs but whether or not they consider you can even afford that is up to them. Having repayments of over 50% of income at your income level is high, not as much of a problem for say someone on 100k as they would still have a good bit left to live on.