Mortgage Amount to borrow?, do you exclude your deposit in this amount? as Equity ?

gemmaking

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Property is worth £160,000
Deposit we have is £40,000 (25 % deposit )

Interest - 2.5% (for this example)
Mortgage calculator
Amount to borrow:
Over how many years?
What is the mortgage rate? %
Interest calculated monthly

The question is, on the amount to borrow, what do i enter there?
is it £160,000 -£40,000? (as i wont be borrowing the full amount, as i have money into it- the deposit)

or do I enter £160,000


Equity question..
and If i put £40,000 into it, is this Equity into the property that I can get back? release?

that I can get back in a few years? so I can get back £40,000 back to me...

and what are the steps/procedure for this? (contact mortgage company/lender, fill forms etc?)

- I mean the equity being released, 'without' selling the property.

So releasing funds by keeping the property ours, in our name.

(even if the value of the property has increased, etc.)

Dave_Ham

You put in the physical amount you want to borrow = £120k in this example

You can either call up the bank, go in directly or engage a broker who will look at this bank and most other banks and apply for you to the most suitable lender.

CLAPTON

presumbaly you are looking at some sort of mortgage calculator?

if it asks for the mortgage amount, you put in 120,000 if that's what you want to borrow (i'm assiming you have extra money for application fees, solicitors and survey costs).


your 'equity' will then be 40,000

you can in principle 'withdraw the equity by

-selling the property and the equity will be the difference between the then selling price (less costs) and the then mortgage amount

or

-you may be able to ask your mortgage provider for a higher mortgage but that will be subject to you meeting their lending criteria at the time.

gemmaking

CLAPTON wrote: »

presumbaly you are looking at some sort of mortgage calculator?

if it asks for the mortgage amount, you put in 120,000 if that's what you want to borrow (i'm assiming you have extra money for application fees, solicitors and survey costs).


your 'equity' will then be 40,000

you can in principle 'withdraw the equity by

-selling the property and the equity will be the difference between the then selling price (less costs) and the then mortgage amount

or

-you may be able to ask your mortgage provider for a higher mortgage but that will be subject to you meeting their lending criteria at the time.

I added this to my post above:

- I mean the equity being released, 'without' selling the property.

So releasing funds by keeping the property ours, in our name.

(even if the value of the property has increased, etc.)

CLAPTON

gemmaking wrote: »

I added this to my post above:

- I mean the equity being released, 'without' selling the property.

So releasing funds by keeping the property ours, in our name.

(even if the value of the property has increased, etc.)

as I've already said,
you may, later, be able to remortgage your property to borrow more money subject to meeting the normal criteria of the mortgage lender.


I've always consider it absurb to describe extra borrowing as 'releasing equity' but then I'm not in marketing.

Thrugelmir

Releasing equity at a later date will come with strings attached. Such as the purpose of the withdrawl of funds.

A property isn't a cashpoint machine.

R_P_W

I think it is probably best to work on the basis that you cannot release your equity without selling the property. A others have said technically might be possible but is isnt straightforward and a lot of people want to INCREASE their equity.

Do you have a particular reason in mind why you might need to do this in the future?

I'm making a bit of an assumption here so if i'm incorrect i apologise, but are you asking in case you need access to some emergency cash in the future? If you are and you are putting all your money towards a deposit it might be worth looking at a smaller deposit and keeping some of your cash back for emergencies?

Soot2006

it might be worth looking at a smaller deposit and keeping some of your cash back for emergencies?

^ Seconded

"Releasing" equity; i.e. re-mortgaging for a higher amount is likely to incur fees + will be subject to your situation and the interest rates of the time!