After house valuation what are the next steps?

pault123

Evening,

I'm looking to move house, the properties i'm looking at are around £20k extra on my mortgage (based on my valuation matching other similar properties on my road)

Once i've had my house valued, and put it up on the market would I then ring my current mortgage provider and ask them to provide me an agreement in principle for the extra £20k on my mortgage?

Or would I wait for an offer on my house, and once this has gone through to completion then ask my provider for the increase on mortgage?

I'm trying to get my head round the mechanics of it all and don't want to find out too late I can't get the extra mortgage i'll need.

I have 20 years left on mortgage now, if I were to remortgage with the higher amount would anyone reccomend then reverting to a fresh 25 year or keep with the 20 years as more capital is being paid off now?

CloudCuckooLand

Wait for an offer. Might be weeks/months and the lenders policy may have changed - for the better, since the credit crunch tied up lending practices.

Keep to the same term.

bmunky7

I would at least look into the likelihood of getting the additional funds based on the new LTV. If you can't get the extra amount this would surely mean you don't sell your house in the first place.

pault123

thanks for advice.

I was thinking along the same lines - as if I come to get the funds and I can't i've just wasted all my time trying and money on nothing

What would my LTV be based on

£90k left on 20 year mortgage
House worth £130k
New house is £150k

?

And based on the above figures would I simply be increasing my mortgage to £110k? ie. £20k difference in house prices?

Fire_Fox

You are more likely to increase your mortgage by £30k as you will need to pay estate agents, solicitors, removals etc. out of the equity. Unless you have savings for that?

pault123

so it may be worth me calling my current lenders and seeing what is available, or would the credit check go against me when I come to need it in reality?

Milliewilly

pault123 wrote: »

so it may be worth me calling my current lenders and seeing what is available, or would the credit check go against me when I come to need it in reality?

Can't you just work it out as 4 x your salary multiple (minus what you already owe) as a quick guide?