Mortgage LTV and Secured Loan advice

alstar1

Hi All,

I'm looking for some advice regarding remortgaging my house whilist I also (rather foolishly) have a second charge secured loan as well

If I combine what I have as my mortgage along with the secured loan i am around 110% LTV on my house.

My mortgage itself only accounts for around 80% - I am coming to the end of my deal soon and was looking to remortgage

even though I have the secured loan on my house am i still able to go to another lender and get a 80% LTV mortgage? or will they take into account the additional borrowing i have secured against my house and take that off what I am able to borrow against the property

i.e. if my house is worth 70,000 and the second charge is 25,000 will they only let me borrow the 70,000-25,000? or will i still be able to borrow 80% of the property value which would be 56,000 - and then also have the additional 25,000 on top of that

hope this makes sense! thanks

_Andy_

You could potentially change lender for the 80% BUT only with the consent of your secured loan provider - google 'deed of postponement'

alstar1

thanks Andy - that was my intention as I do not foresee a problem with the second charge lender but i am unsure if, for example, i go to abbey and ask for an 80% LTV mortgage - would they not take the 25,000 of the total they would be willing to lend?

if they were to give me the 80% then including the secured loan I would be in negative equity - something which, tbh, I would not mind 'that' much as I don't think it would be for long if i did get the remortgage

Dan_1976

The lender of the 1st charge should not really worry about the 2nd charge, the deed Andy mentions means they are 1st in line!

Senior_Paper_Monitor

Should be do-able dependent upon affordability/credit rating etc (and they will certainly look carefully with second charge mentioned).

Also, if the 1st and 2nd charge are with the same company - as in a Northern Rock 'Together' product - they may not be 100% co-operative AND, if it is the 'Together' job, or something similar, the cost of your loan may go up considerable if separated from the mortgage.

Dan_1976

Together mortgage is part secured part unsecured so only affordability to worry about. And the fact NR will increase the rate on the personal load your left with.

alstar1

thanks folks thats a great help