correct mortgage category

mr_renovator

hi folks,

long time reader, first time poster here with a daft question

I know what a first time buyer is, I know what moving house is, and I think I know what remortgaging is, but i'm not sure the right box to tick for my circumstances:

I bought a run-down property for cash, have now renovated it using cash and some borrowing on cards and from kind family, it's now ready and I'm looking to get a mortgage to pay back the debts.

since we're not first time buyers is it 'remortgage' I need to tick on the online application forms or 'moving house'? I just don't want to make a silly error causing any problems with the application.

we can't put in the purchase price as the value now is much greater, which should become clear when the valuation is done. right now I'm basing the value for the application on an average of local relevant recent sold prices. the ltv is very comfortable (around 40%) so I have some leeway.

thanks for your help folks

Armorica

I think it's just a mortgage...(but an unusual one as there is no purchase involved)

In cases where there was already a mortgage, it would be a second mortgage, or equity withdrawal or release.

mr_renovator

Thanks Amorica, i've just seen elsewhere that it can be referred to as a 'remortgage of an unencumbered property' but there is no such tick box, I think i'll try 'remortgage'.

Thrugelmir

It's the mortgaging of an encumbered property.

Perhaps best to kick matters off by phone. If there's no appropriate box on the application form which results in your application just stalling.

GMS

Remortgage is what it is.

How long have you owned the property? Is it residential or Buy to Let?

You will still need to put the purchase price on the form. Land Registry will have the figures anyway.

How much did you buy for? What is the value now? How much was spent on the works?

Ensure that any lender you use is happy with the purpose of funds i.e debt consolidation.

mr_renovator

Thanks Thrugelmir, I've found what looks like a good deal so I'll give them a bell in the morning...

amnblog

I would call them as I know of at least one lender who's systems have not even been set up to take account of an unencumbered re-mortgage scenario.


Assume nothing.

mr_renovator

Thanks GMS.

To answer your questions - I've had the property around 15 months. It was purchased with cash as an office building (look like a house, may have been residential previously) in a residential area in a poor state of repair for £55k. I obtained the Change of Use, have fixed the roof, added wall floor and ceiling insulation to modern standards, new kitchen, new bathroom, all internal surfaces renewed, re-wired, new boiler, for around £30k. market value now I believe is around 130-140k. I am looking to borrow £45-50k.