Looking to release equity - advice

sysadmin

Hi all,

We're looking to release some equity in our house and wondered what we could potentially borrow?

Our current mortgage is with Virgin and has about a year left on the current deal. Our house was valued last week by an estate agent (I know banks will value it too) for £190k. We owe just under £120k

How much roughly do you think we would be allowed to borrow?
We're thinking of a loft extension and some other home improvements

AnotherJoe

Impossible to say without knowing your income and to a lesser extent,your expenditure.

Thrugelmir

Cost your ideas up then discuss the matter with Virgin. As not just a question of having equity in the property. You'll need to undergo due process with affordability, credit checks etc.

sysadmin

Ah ok sorry didn't realise

Aside from the mortgage we have no real debts
Between us we earn around £50k per year and have 3 children

We have a few companies coming out to give us quotes next week

ChrisJ1988

Your best bet really is to just ring Virgin, I am with them and always found them to be most helpful. Id be interested to know how you get on.

sysadmin

ok to update this,

Spoke to Virgin last night. They talked through the basics and said on principle they would allow us to borrow up to £40,000 based on salary, LTV % (85%) and existing mortgage.

We are currently 1 year into a 5 year fixed deal so they said id need to speak to one of their mortgage advisor's as to wether it would be batter to pay the penalty for coming out of the deal early and then having a new mortgage OR having a secured loan against the house for the £40,000 but the interest rate is 5.6%