Phrag with fungus issue help needed.

[playtime8978]

My phrag I bought a couple of months ago has developed fungus , it didnt look great, the medium ( white on bark) when I got it but didnt repot ( dont ask me why I have no sensible idea) and today found white balls of fungus on the root I can see, I am gonna whip it out of the pot and I have fresh bark soaking ready for it and I can do some dead leaf removal at the same time. It has a new growth that is growing up well so really dont wanna lose this guy, I have kept it pretty moist as I thought that is what Phrags wanted. Have I done the wrong thing? Any advice on what I can buy to treat the fungus would be much appreciated I have no clue or what I can do with it from this point. It sure doesnt seem a good thing to have fungus growing on the root area Please not I am in the UK and cant get brand names that they can in America so chemical names would be much appreciated. or am I being over paranoid?