help, how much can we borrow?

jammiev

hi, we bought a house in 2006 value £90,000 and took out a 95% mortgage.
we have £75,000 outstanding, so the question is, how much could we borrow without the payments going up too much? we currently pay approx £475 per month now.
the house is now worth approx £120,000 to £130,000!

how can we work it all out?

thanks

tuggy

I fear your house may not be worth £120,000 at the moment. have you done vast improvements since the 2006 valuation?

jammiev

yeh, new bathroom and new garden.

EZTutty

you will prolly find that those kind of improvements add very little to the value of the house.

They mearly make it easier to sell.

_Andy_

I would be very surprised if a valuer put £120-£130k on it.
How much do you actually want to borrow and what is the purpose of the extra borrowing?

beecher

At a guess you're paying around 5% at the moment - even if your valuation did come out as you hope (and like others, I doubt if very much), you'd be unlikely to get a lower rate than that at the moment, so wouldn't be able to borrow extra without your payments going up.

Phone your lender and ask what they value your property at, and also check on here

http://www.nationwide.co.uk/hpi/

New bathroom and garden isn't going to make much of a difference to the value.

Use

http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

to work out how much different mortgages would cost