remortgage

purcel

Have you had permission from your mortgage lender to let the residential property? As you said one is buy to let, one is residential but you are letting both?

ViolaLass

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 - not all, most of that money will have been you paying off the interest - n my mortgage payments would start again - not sure what you mean by 'start again' and so would my term of mortgage like 25 years - if you do that every time, the mortgage will never end! Your next term would be 20 years (although you could change it).
Sm I right or wrong

Equity is not the amount of money you've paid into the mortgage, it's the amount of the property that you outright own, i.e. that you do not owe to the bank.

amjed_afzal

R_P_W wrote: »

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.

Properry 1 I bought the for 43,000 total mortgage remaining is aroud 49, 000 thr value of the property is 55, 000
Properry 2 I bought for 40, 000 total mortgage remaining is around 48, 000

R_P_W

amjed_afzal wrote: »

Properry 1 I bought the for 43,000 total mortgage remaining is aroud 49, 000 thr value of the property is 55, 000
Properry 2 I bought for 40, 000 total mortgage remaining is around 48, 000

Incomplete answer. Again! How much is number 2 worth now?

On property one how can you owe more on the mortgage than you bought it for??

I'm trying to find a brick wall to bang my head against!

somethingcorporate

None of this makes sense!

amjed_afzal

R_P_W wrote: »

Incomplete answer. Again! How much is number 2 worth now?

On property one how can you owe more on the mortgage than you bought it for??

I'm trying to find a brick wall to bang my head against!

Sorry for the incomplete answers
The 2nd properry is also worth 55,000
The reason the mortgage is more than the property is of the interests
The front property I bought for 43, 000 with 10% buy to let. The other property property I bought is 40,000 as a residential properry with 10%.
Its a total repayment with interest which makes it more than the mortgage or have I got that wrong
Sorry to be a pain
Thanks for the help

ViolaLass

amjed_afzal wrote: »

Sorry for the incomplete answers
The 2nd properry is also worth 55,000
The reason the mortgage is more than the property is of the interests
The front property I bought for 43, 000 with 10% buy to let. The other property property I bought is 40,000 as a residential properry with 10%.
Its a total repayment with interest which makes it more than the mortgage or have I got that wrong
Sorry to be a pain
Thanks for the help

That would only make any sense if you haven't been making your mortgage payments i.e. not paying off the interest. This would be very unusual!

Also, I had got the impression your borrowing had gone up because of the money you spent on renovation. Is this not the case?

amjed_afzal

ViolaLass wrote: »

That would only make any sense if you haven't been making your mortgage payments i.e. not paying off the interest. This would be very unusual!

Also, I had got the impression your borrowing had gone up because of the money you spent on renovation. Is this not the case?

Thanks for getting back to me
I just bought the properties last year around october 2012 and I have been payinf the mortgage off for nearly a year now as both properties are rented out.
I spend around 15k on refurbishment on both properties.
The 15k i spend was out of my own pocket i did not borrow that money
I just dont know if there is any equity in the properties.

ViolaLass

So if you bought property 1 for £43k, how come you now have a mortgage for £49k?

R_P_W

Ok so you think they are worth 55k each.

Ring your lender and find out the settlement figures for both mortgages! I.e how much it would cost you today to pay them both off. Forget adding any interest, you have paid interest but the settlement figure won't include future interest.