Remortgaging & debt conslidation

benish

Hi

Ive been told that I wouldnt be able to borrow more against a mortgage when moving to a new company to pay off a loan and also to cover an ERC (debt consolidation)

If I borrowed more for "rennovations" or a flash "holiday" would they be any way of checking?

Also, we paid 125 for the house 18 months ago, we've fully rennovated it and reckon with local prices it could now go for 150-155. This would bring the LTV down massively for a better deal, but would a sureveyor agree on such an increase?
Thanks

kingstreet

Capital raising is an issue both of affordability and loan to value.

We have no way of knowing what a surveyor is going to think about what you've done to your home.

Lying about the purpose of the capital raising isn't smart, as you'll have to be able to pay the new mortgage payments and the credit payments you want to get rid of as you'll be unable to tell the lender the commitments will be repaid on completion.

benish

The payment for the new mortgage would be almost identical to the last, and that's with extra borrowing and 15 years less! It wouldn't be a problem paying both, and then if possible the loan could then be paid up saving us £150 a month!