Remortgage options

celiao82

I have a mortgage on a shared ownership property.

I took the mortgage out 4.5 years ago on a fixes rate of 5.29%.

The mortgage was for £100,000 which was for 40% of the property value. The property was valued at £250,000.

As the rate is now coming to an end I am wondering what I need to do to get another fixed rate mortgage.

The outstanding mortgage is for £92000. The property has increased in value (it is in central london) and is worth between £300,000-£320,000.

Would I need to put more money towards the equity or use as a deposit in order to be able to get a new mortgage? Will I need to increase the amount borrowed in the mortgage to still own 40% of the mortgage?

I'm not really sure how remortgaging works so thank you for your advice.

dimbo61

well your 40% is now worth more and you dont need to borrow more to get a remortgage unless you want to buy the other 60%.
What stands out is that you have only paid £8K off the mortgage over the last 4 1/2 years ( was the term 30/35 years?)
If you want to buy the rest of the property it will now cost even more !!!
You need to look at your long term plans ! Are you going to get good pay rises each year and be able to afford to buy all of the flat.
Do you want another long term fix and can you afford to pay more each month ( hence clearing more of the debt each month)
Living in london is very expensive but have a look on the mortgage free board at how to reduce your mortgage debt