Advice please - Remortgaging/Equity release after 100% mortgage

hard_to_handle

We bought a house on 100% mortgage for 200K 6 months ago and we have extensively renovated, spending 40K (short term loans,credit cards, overdraft). 2 estate agents have said the property could now sell for 250-260K.

We would like to put the 40K we spent on to the mortgage, but have just been told by our lender that they will only be able to give us 90-95% after re-valuation.

We don't want to pay £200 for our lender's survey if they won't be able to give us the full amount, and then have to fork out for someone else's revaluation process.

Do we have any other options for the 40K?

Once we have paid for one revaluation survey, will that be sufficient for other lenders/companies should we choose to approach someone else?

Combined income 80K and rising in August (if this has any baring on it?).

We're new to all of this and we'd be grateful for any advice!

homer_j_3

The reality is that nobody will lend against a property without a valuation. There are some companies that will use statistical data but this is usually where there is a lot of equity.

Your 2 choices are to either remortgage for the amount you require or get a secured loan if the mortgage co wont give you the required amount.

Clearly there will be costs in closing your current mtg and there will be fees setting up your new one so it may not be a cost effective solution. A secured loan may be more expensive than what a normal further advance would be.

A valuation will need to be carried out for a secured loan too and any lender you approach will want to make their own valuation so you cannot get one and carry it with you to every lender you choose.

AndrewSmith

It is very tight isnt it bearing in mind that £250,000 x 95% is 237500.

I'm afraid that the true value for mortgage purposes will not be established without having a lender conduct the valuation.

Also, if you apply to another lender they will each want to carry out their own valuation, as the valuation is for their benefit not yours.

There isnt really a lot you can do to find the value first without paying for a valuation. Remember that an Estate Agent will only know it's 'Market Value' as opposed to the value for mortgage purposes. The two can be different as the latter is usually obtained by a surveyor through comparing your property against similar ones that have recently SOLD and using the price they actually SOLD for as the comparable value.

Andy