Mortgage - am very confused.

markinmanc

Hello all! I owe about £22k on a house valued at about £85k by the lender. (Houses locally are on the market for a lot more, though I know that doesn't mean they go for this). I've got 7 years left on it as a straight repayment mortgage.

Is it possible to remortgage to release equity on the house, and extend the repayment period? Been trying to get through to my current provider for advice, but after three phone calls of 15 minutes plus on hold, I never got to speak to someone.

I'll go in to an actual branch on my next day off, but some knowledge in advance in laymans terms would be welcome.

ACG

Theoretically yes.
It would be subject to underwriting - your income/age/credit/expenditure etc.

If you want to post the following im sure we can give you a better idea:
How much extra you want to raise,
What its for (debt consolidation/new car/holiday/home improvements etc),
How much is your income,
How old are you,
Do you have any other debts/credit commitments etc?

stator

Assumig you still qualify for a mortgage, yes it is possible. You're not near the retirement age are you? Your employment is still solid?

stephenni1971

Why limit yourself to going through your existing lender?

A remorgage extending the term and increasing the loan may be possible subject to the usual criteria but use an adviser who can look for the best deal in the marketplace rather than restricting yourself to the offer of one company.

enthusiasticsaver

Yes, you should be ok to remortgage and change repayment period so long as the total amount borrowed is within your affordable limits. Most will lend up to 4-5 times your salary now but there are new affordability checks so you may have to go into all your outgoings and income. It will also depend on what you want the extra money for and the repayment period may depend on your age - some lenders are now refusing to lend into retirement. There will be charges too. Does your bank or building society not do an online tool for mortgage borrowing?

markinmanc

I'm in my mid 40's and in near full time employment (30 hours per week) . Though this is a recent change, previously I had a contract but not regular hours. Wanted to raise about £20k to pay off some loans mainly. My basic salary is £20k, but I recently took out a loan of £8k. I wasn't aware I could even consider raising capital on the house.

I'm usually in my overdraft, but have never not paid a bill or direct debit. I get loan and credit card offers almost every day in the post, which I guess are easier than sorting out a mortgage under the new rules.

I did my current providers online tool but it said it wouldn't lend me anything. I opted for a repayment period of ten years.

Think an adviser is a good idea, thanks. :-)

ACG

I would put money on it being achievable based on what you have said. If your current lender has said no, speak to a broker. There could be other options.

markinmanc

Thanks everyone. I'm popping in to a local branch on Thursday to see what they say, if not successful there I'll be off to a broker.

Who thought getting a job could be such a pain! That's the main reason I want to sort our my finances.

markinmanc

Just a quick update. I spoke to an adviser at a local branch. Due to the loan and working part time (30 hours a week), I wouldn't be considered a remortgage with them.

They would give me a loan though. :rotfl:

I'll have to decide what to do next. I was hoping to get a decent chunk of the equity to pay off the loan, also do some work on the house. It's not something essential.
A big thank you again to the posters on this thread. You've given me some good ideas and pointers. I've learned a lot about money over the last few days.

amnblog

I suggest you approach a local broker like ACG.

Your current lender saying no is not the end of it.

markinmanc

amnblog wrote: »

I suggest you approach a local broker like ACG.

Your current lender saying no is not the end of it.

True. I'll chase that up in the next week and update on any progress. :-)