Remortgage help please

Joannejmorg

Hi there.
I have just officially bought a house, it needs alot of work doing to it before we can move in so we have to continue renting until work is complete.
We bought the house for a small amount & we have now borrowed 25k at a ridiculous rate to complete work.
Once the house has been renovated can I then apply to remortgage after say 6 months as I'm hoping the house would have gone up in value to more than what I've paid for the house & the loan together.
I then want to pay off the loan & have a mortgage payment only. I just don't understand how this part works.
Any advice would be greatly appreciated.

Thanks in advance

Janetta

Hello J,
Yes you can do this. However it depends highly on overall mortgage payments, borrowed amount and how much equity.

In my case i borrowed sufficient to cover credit card & overdraft debt.

The home improvement loan was also secured against the property.

amnblog

Be careful, you may have a penalty on your current mortgage if you replace it in the short term.

Joannejmorg

Thanks for replies. Yes I'm aware there will be a charge. I'm just unsure of the remortgage process.
For example: I purchased my house for £37,500, I then had a 25k loan. So if I am able to remortgage after six months & pay the penalty, do they then come out & value the property??
If the house is then worth for example 75,000. What happens then?
Thanks

Janetta

To remortgage involves completing administration that is sent to you - once you inform them. In my experience or am i aware no one comes out. Given that you are applying only 6 months after starting the mortgage you should get a response quite quickly. If there is sufficient equity there should be no problem. admin -