remortgage

amjed_afzal

I want to remortgage but I am confused
I want to realise some equity from my house
I bought two houses last year in December one buy to let and one residential property
I spend around 15k on both houses and both properties have been rented out
My mortgage is 400 on both houses and rental income around 800.
I need the extra money to buy another property
Should I remortgage
Plzz help

ExpertAdvice

Hi,

Whats the property price for both the properties and whats the outstanding mortgage on both?

amjed_afzal

ExpertAdvice wrote: »

Hi,

Whats the property price for both the properties and whats the outstanding mortgage on both?

Thanks for getting back to me
The both properties I bought for 84,000 last year and repayments are 400. For both properites its over 105,000 with interest.
I have not paid much the mortgage off as I bought them last year bur did spend 15k on both properties to refurbish them.
Please advice
Thanks

~Beanie~

So the properties cost you £84,000 but your outstanding mortgage is £105,000? How much are they actually worth now? Is there any equity?

amjed_afzal

~Beanie~ wrote: »

So the properties cost you £84,000 but your outstanding mortgage is £105,000? How much are they actually worth now?

A same property on the same road is worth 55, 000 each
I did spend money doing them up but that money was mine so both properties are worrh more then 110, 000
So do you think I have any acutal equity in both properties
I had my mortgage fixed for 5 years.
I am little confused in how rhis remortgage thing works
I.wanr to buy another buy to let property that I have seen but do not have all the funds
Can u advice
Thanks

R_P_W

How much is each property worth now?

What is the outstanding mortgage on each property?

amjed_afzal

R_P_W wrote: »

How much is each property worth now?

What is the outstanding mortgage on each property?

Thanks for getting back to me
On each properry I still need to pay around 49,000 each property due to the interests

ViolaLass

So you spent £99k (£84k + £15k) and now have a pair of properties worth £110k (by your reckoning). You owe £98k. That means your equity has gone up to around 11% (£12k).

My advice would be not to do anything more until you understand mortgages, equity etc.

amjed_afzal

ViolaLass wrote: »

So you spent £99k (£84k + £15k) and now have a pair of properties worth £110k (by your reckoning). You owe £98k. That means your equity has gone up to around 11% (£12k).

My advice would be not to do anything more until you understand mortgages, equity etc.

Sorry to be pain
How can I understand equity
For example my houses the mortgage has been fixed for 5 years. After 5 years I decide to remortgage I will get the money in equity that I paid for 5 years n my mortgage payments would start again and so would my term of mortgage like 25 years
Sm I right or wrong

R_P_W

You're making this into hard work.

The quite is the difference between the balance of your mortgage owed and the current value of the property.

So answer these questions in full!

Property 1. What is the balance owed on the mortgage today? How much is the property worth?

Property 2. Same as above.

Annisele

amjed_afzal wrote: »

Sorry to be pain
How can I understand equity
For example my houses the mortgage has been fixed for 5 years. After 5 years I decide to remortgage I will get the money in equity that I paid for 5 years n my mortgage payments would start again and so would my term of mortgage like 25 years
Sm I right or wrong

I think you're just very confused. The term of your mortgage and the interest rate you pay have nothing to do with the amount of equity you have. Mortgage terms don't have to be 25 years - so in five years time you could choose a new term of 20 years, or 17, or 5 (subject to lending criteria).

The equity in each property is:

[The amount you'd get if you sold the property] - [your outstanding mortgage debt] - [all the money you'd have to pay to sell].

For example, if a property was worth £100k, with an £80k mortgage on it, and it would cost you £5k to sell it (in agent's fees, early repayment charges on your mortgage, etc), then your equity would be £100k - £80k - £5k = £15k.

If you answer RPW's questions you'll get some more help.