Need advice on mortgage.

graham8622

hello. we recently purchased a house that was in need of remodeling. We got a mortgage for the house and had to take out an additional loan to pay for the remodel. The mortgage is a 2 years fixed and the additional loan is over 5 years. Because the additional £15,000 loan is only over 5 years, the monthly payments are just about equal to the monthly mortgage repayment.

Since then we have finished the work and now want to look into combining the 2 loans to make up one mortgage. All said the 2 loans add up to 75,000 and the house was valued now (after the work was completed) at around 100k.

How do we go about doing this? Is this a remortgage or debt consolidation? I don't even know what to classify it as. Any advice would be helpful.

thanks

theartfullodger

Move this to the mortgage board I'd suggest.

But it will be a re-mortgage if you can get it. 75% LTV should be OK but the only valuation that matters is the one from the lender's surveyor and it may not be the same as what you honestly and carefully have researched and believe.

I'd ask the principle Mortgage lender first - assuming you have good payment history etc might be prepared to do something. However you say "Recently bought" and "2 year fixed" so I guess you are early in the life of the mortgage and they (and anyone else) might not play ball this early/soon.

Cheers!

Lodger