Remortgage questions (Basics)

hass123456

Dear Forum,

I purchased my home 2 years ago for £215,000, with a 85% LTV deal.

That's £32,250 deposit.

Properties like mine in the immidiate area are worth £250k now (asking price). Several have come and gone in a matter of weeks. It's east London etc, and prime FTB area. I do not want to take out any equity. I want to take new deal with a 80% or even 75% LTV. Reducing my monthly payments, and on a 23 year term. (was orginally 25).

I have £171,500 left on the mortgage. That's around £44k equity, not factoring any property price increase.

Would it be possible to just put down another £10k or so and go for a 75% LTV based on the orginal purchase price?

How does it work?

I hope this make sense.

Thanks,

kingstreet

Find comparables. These are similar properties to yours which have sold in the last 120 days within half a mile of yours.

http://www.rightmove.co.uk/house-prices.html/svr/3115;jsessionid=4C60D9CB6B639C9DF595887A0F280C62

If you can find three, take an average and this is roughly what the lender's surveyor will use for your valuation.

Take your current mortgage balance and make an allowance for part of a month, so you don't underestimate. Then, deduct from that the money you want to put in to the transaction and see the loan to value to complete the application.

You'll pay the extra money to the solicitor handling the transaction just before completion.