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Please help me understand remortgaging
Pinkie75
Posts: 5 Forumite
Hi all
First post on this forum so please be kind!
Our fixed rate mortgage comes to an end in May 2014 at which point we are looking to remortgage.
The original mortgage was at 85% LTV. The house has increased in value by 100k (we got very very lucky with a desperate seller!)
We would be looking to reduce our monthly mortgage cost when we remortgage. Can we use the 100k or a portion of it to do this? Does equity count towards LTV when you remortgage?
Thanks!
First post on this forum so please be kind!
Our fixed rate mortgage comes to an end in May 2014 at which point we are looking to remortgage.
The original mortgage was at 85% LTV. The house has increased in value by 100k (we got very very lucky with a desperate seller!)
We would be looking to reduce our monthly mortgage cost when we remortgage. Can we use the 100k or a portion of it to do this? Does equity count towards LTV when you remortgage?
Thanks!
0
Comments
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Yes. It does.
Your new lender will take your estimate of the current value and have a surveyor visit the property to decide if your estimate is realistic.
If it is, you'll get the product you applied for, based on your estimate of value. You choose the product, based on the loan to value - mortgage amount divided by estimated property value.
Look at the recent (last four months) sales of similar properties in your area (within 0.5 miles) to set a realistic estimate.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Excellent thank you.
There is a house for sale 5 doors down which is exactly the same as ours so I am watching closely0
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