Have I got this right?

andybev

We have a house bought for 130,000 (with a 25% deposit), which is now market valued at 160,000.
We have paid the mortgage without missing a payment for the last 6 years so it is now down to about 80,000 from 97,500.

That being the case, I want to get the loft made into another bedroom so I used a remortgage calculator and if I remortgaged for 40,000 I would still only be paying the same as I am now paying per month (£560)- which is ok with us as we have no kids to leave the house to so using the money in this way.

Also, we have been paying a fixed rate mortgage of 4.7 which we would like to change.

Have I got this righ,t as this was our first mortgage and I do not have a good grasp of this subject. have I given enough info for someone who knows what they are doing to maybe give their opinion.



Thank you

hildosaver

If you remortgage for £40,000 that would increase your mortgage to £120,000 which almost certainly would increase your monthly payments and also significantly decrease the amount of equity in your home which could make remortgaging in the future quite expensive particularly when interest rates go up. You have a lot to think about.

kingstreet

You would be asking your existing lender for additional borrowing of that £40k; or taking a new mortgage for the total amount from a new lender. The latter is a remortgage.

You also have the option of a secured loan from a different lender while leaving your existing mortgage where it is.

You may wish to seek independent advice from a whole market mortgage broker to establish your options in detail.