Remortgaging for Dummies

Sammz

Anyone have a link or can explain it in simple terms for me?

I'm wanting to get a new bathroom and kitchen but don't have the cash. The plan was to save but that's going to take so much time that I'll be ready to move out by the time it's done! I want to enjoy the place looking good for a while. I have no idea what remortgaging is all about so may not even be possible for this?! I'm currently half way through a 2 year Northern Rock Together mortgage. Going by what other places are selling for this flat would sell for 30/40% more than what I paid for it.

MortgageMamma

Call your existing lender and see if they can offer you a further advance, however avoid remortgaging or you will have to pay early repayment charges which can be quite steep, think twice about securing the money on your home - especially having such a high loan to value at outset - you wont have cut into paying off your capital yet. would you not prefer an unsecured loan?

arnie&caseysma!

When taking out the NR mortgage they would give you a maximum unsecured amount that they would lend you. Did you take the whole amount at the time? If not, it is pretty easy to draw down more money from this. When I had my first together mortgage I needed some extra cash for the new windows and doors I was installing. I make a call to them and asked for the extra money, they told me how much my monthly mortgage payment would increase by and when the money would be in my bank account (sent straight to your account). As quick and easy as that.

There is no need for them to run any further checks as you are already pre-approved for the loan.

Sammz

arnie&caseysma! wrote:

When taking out the NR mortgage they would give you a maximum unsecured amount that they would lend you. Did you take the whole amount at the time? If not, it is pretty easy to draw down more money from this.

Nope, I didn't take the maximum amount so I'll give them a call and see what they are saying.

AndyWallace

For future reference about remortgaging, you can refer to this simple guide published by the FSA:

http://www.fsa.gov.uk/pubs/public/mortgage_steps.pdf

Sammz

Thanks Andy, I have bookmarked it

Sammz

So much for that idea. The guy on the phone said I didn't have access to any more money and I'd have to pay £300 for a secured loan to add to my mortgage.

I'll just have to work harder at paying off cc then saving!

MortgageMamma

if you only have a year to go on car loan and 900 on CC its worth the wait and the save i suppose