So, we are coming to the end of our 2 year fixed rate and currently looking for other deals and what to do. Our property needs a few things doing to it, such as some new windows (we replaced what we could afford when we first moved in). My circumstances have changed and now on 15k lower than i was originally on when we took the mortgage, while OH has hers increased by 5k (she is very likely in a few years to go up quite significantly).

We currently have little wiggle room after monthly payments, bills etc. but with 15 years left on the mortgage, I am half tempted to keep paying what we do, save for windows in a few years. OH wants to reduce payments by increasing the term, add on an extra 10k to get windows done.

What would STW do?

a) stay with current term and payments (little wiggle room if something big comes up)
b) seek out a new term with reduced payments (going up to say 25 years left on payments)
c) Increase term, add on 10k, get windows done while also having smaller payments but for longer.
d) any other options?

Thanks in advance!

For me it depends how flexible the new mortgage is with over-payments. Then you could extend the term and still over pay as and when you desire, then if times get tough you’ve a lower minimum payment

I don’t think anybody can give you a right or wrong answer. A lot will depend how much equity you have in the house – would taking 10k out alter the loan to value a lot? This could be the difference between a decent renewal rate or not.

The windows will only need replacing down the line and how will you pay for them then? Are they a need or a want?
For me I wouldn’t worry about increasing the term right now because you can always shorten it in the future if you wish, as long as it’s paid off before retirement. Iiwm I’d stick the windows on the loan and extend the term.

It might be worth getting the house re-valued if you’ve had work done. This may improve the loan to value ratio of the mortgage.

From selling my previous property and deposit our LTV was fairly small. We also did not go anywhere near the full amount the banks were willing to lend us (which was pretty crazy to be honest and seemed a little irresponsible)

The value has definitely increased, we have had a fair bit of work done on it (new kitchen, boiler, converted outhouse), but no harm in getting it valued.

Windows were single glaze, rotten in places. We’ve used the plastic secondary glazing for now to stop condensation forming on the inside.

I suppose with a longer term and added flexibility, we may have some extra money for me to re-train too. That’d be a bonus.

We were in exactly the same situation last year. 2 year fixed was coming to an end, windows needed replacing. Although we only needed 5 of them and nothing special so quotes we were getting were between 2.5-3K.

In the end we bought the new windows on a 30 month 0% credit card. I set up a standing order to pay it off before the interest rate kicks in, but you can do a balance transfer on another 0% card if you want to stretch it out a bit more (and pay less each month).

Then signed up for 5 year fixed, the payments are almost exactly the same (£4 cheaper IIRC) as it was on the 2 year deal.

I’d hate to increase the mortgage sum or the term but that’s me.

I did similar last year and went with C

I was partly forced into it by an endowment shortfall (matures in a couple of years) so I remortgaged to switch to a repayment (to cover the total outstanding + £20k for bathroom, front-door & garden sort-out). I’m actually paying a bit less monthly but now back on a 20 year mortgage. I’ll be working for another 20 years anyhow plus will pay off a chunk of the mortgage when the endowment matures and I’ll inherit enough to pay anything remaining off (although I’d happily let it run out the full 20 years…)