LTV and re mortgage questions

monty-doggy

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

suze369

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.

kingstreet

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.

monty-doggy

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.

monty-doggy

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!

Thrugelmir

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.

amnblog

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).