remortgage predicament

carrottopper

The missus and myself are looking to remortgage as our current one is coming to an end shortly. My question is this. We bought the house for 115k with a 10% deposit and completed a lot of modernisation. We borrowed an extra 12000 on the mortgage to pay for the works so this effectively cancelled out our deposit if you will. The house is now valued at 165k. My question is will we be ok to remortgage?

kingstreet

Whether you are going back to your existing lender for a customer retention product, or are remortgaging to a new lender, you should have the option of a revaluation.

You may have to pay for this, you may not.

You need to establish your options based on your value, outstanding mortgage and affordability.

carrottopper

Thanks. The house was valued by nationwide but we were looking at going to natwest who will do the valuation and legal fees for free. I just wasn't sure how it all worked with regards to a our initial deposit we put down. Effectively with the extra we borrowed it was kind of like having a 100% mortgage if the house was valued at what we paid for it if you get what I mean. Having never remortgaged before we went sure if a deposit needed to be put down?

mgfvvc

carrottopper wrote: »

Having never remortgaged before we went sure if a deposit needed to be put down?

I don't think so. What matters, as far as I know, is the loan to value ratio. If you are borrowing 127K and the valuation is 165K, then the LTV is 77%, which is equivalent to a 23% deposit. Unless I've misunderstood something you should be fine.