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LTV and re mortgage questions
monty-doggy
Posts: 2,134 Forumite
Hello
If house prices rise, and you want to re mortgage, is it calculated on the purchase price or the current value?
Also how long after having a mortgage could you switch and release some money?
We bought in June 2013 however had a change of circumstances and need to release £8-10k to fund some home improvements.
Our current LTV is 70% releasing the money would put us at 75% and our payments would rise by £30 a month which we can afford.
Thanks
If house prices rise, and you want to re mortgage, is it calculated on the purchase price or the current value?
Also how long after having a mortgage could you switch and release some money?
We bought in June 2013 however had a change of circumstances and need to release £8-10k to fund some home improvements.
Our current LTV is 70% releasing the money would put us at 75% and our payments would rise by £30 a month which we can afford.
Thanks
0
Comments
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I have just been discussing remortgages with my provider - they calculated on the last valuation done but gave me an option to pay for a revaluation. I have opted for the last valuation. If your latest valuation was when you purchased the house then you might find that will be the case for you too.
Sealed Pot Challenge 5 - #14750 -
Do you want a remortgage, or do you want a further advance?
Same lender = product transfer and/or further advance for increased borrowing. Current mortgage unaffected. Usually indexed/desktop current valuation
New lender - repay existing mortgage and possibly borrow more = remortgage. Usually inspection by surveyor.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 -
I just want to borrow another 8-10k. We paid £55k deposit but didn't bank on the work on the house being needed so urgent.
What do I ask for ? Further advance? Will my interest rate go up as my LTV will change but they now have deals which allow 75% LTV at a similar rate.0 -
I rang the woolwich, they said increased borrowing would be a full new application and credit check and I'd need to be in my job min of six months, so it will have to wait for another five months!0
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monty-doggy wrote: »I rang the woolwich, they said increased borrowing would be a full new application and credit check and I'd need to be in my job min of six months, so it will have to wait for another five months!
New rules starting to have an impact by the sounds of it.0 -
You do not necessarily have the borrow the extra from Woolwich.
If time is an issue you could apply now via a broker for a second charge loan via a specialist lender (just for the extra amount).I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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