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Remortgaging - someone explain please?!

flammable999
Posts: 114 Forumite
Hi
I was wondering if you could help. I may be asking really obvious questions
but I am completely lost. In October 2008, I took over the mortgage and got
myself on the property ladder. The house was valued at £250k at the time
and i took out a mortgage of £155k on it.
The fixed rate (7.2% at the moment) is due to end this October and will be
switching to the lender's variable rate of 8.5%. Obviously I am keen to
switch at the end of this fixed term. I'm a bit worried about this due to
my credit, but thats a separate issue. What I wanted to know is, I look at
remortgage deals on the internet and these still ask for deposits. So where
does this deposit come from? Does it come from the equity in the house?
Lets put it another way, by the time I come to remortgage, I will have paid 24*952 (interest only). Say for example, I took up a remortgage deal askin for 30% deposit and i wanted another 20k on top(remember the house is worth 250k), how much would the mortgage be for, how much would the deposit be and where would this come from, and what proportion of money would I then be making remonthly payments on? Am I right in thinking I dont have to stump anything up monetary-wise physically?
Thanks in advance, I just want some clarification as to how it all works.
I was wondering if you could help. I may be asking really obvious questions
but I am completely lost. In October 2008, I took over the mortgage and got
myself on the property ladder. The house was valued at £250k at the time
and i took out a mortgage of £155k on it.
The fixed rate (7.2% at the moment) is due to end this October and will be
switching to the lender's variable rate of 8.5%. Obviously I am keen to
switch at the end of this fixed term. I'm a bit worried about this due to
my credit, but thats a separate issue. What I wanted to know is, I look at
remortgage deals on the internet and these still ask for deposits. So where
does this deposit come from? Does it come from the equity in the house?
Lets put it another way, by the time I come to remortgage, I will have paid 24*952 (interest only). Say for example, I took up a remortgage deal askin for 30% deposit and i wanted another 20k on top(remember the house is worth 250k), how much would the mortgage be for, how much would the deposit be and where would this come from, and what proportion of money would I then be making remonthly payments on? Am I right in thinking I dont have to stump anything up monetary-wise physically?
Thanks in advance, I just want some clarification as to how it all works.
0
Comments
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the deals you see are asking for there to be this much equity in the property, so the difference between it's value and the total amount you wish to borrow.
if you were buying it would be your deposit, as you are remortgaging you are correct in thinking that you wouldn't have to put cash in.Happily an ex mortgage broker!0
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