Help Re; Getting Money Out of Our Property!

hazyjo

They're going to be extremely cautious about lending money if you're showing you're getting further into debt generally and want some to pay that off!

pinkshoes

You need to get the mortgage company to value it.

The mortgage company will still want to keep perhaps a 10% deposit, so if it is worth £200k, and you have £63k equity, then you could potentially release £40k.

MEM62

tturnstill1988 wrote: »

Me and my wife bought our first house last year for £149,000. We put down a small deposit and after paying back our monthly mortgage (and seeing the majority of it swallowed by interest!! :mad: ), we have an outstanding mortgage of £137,000.

So you have cleared £12k off your mortgage in a year, which is no bad thing, yet are frustrated with the amount of interest you are paying.

tturnstill1988 wrote: »

Is it possible to go to the bank and 'remortgage' for closer to its current market value and receive the cash difference? Say if we remortgaged at £190k would they then give us £50k ish??

But even with that frustration you want to borrow more money and pay additional interest.

I am struggling to see the joined up thinking here.

ThePants999

MEM62 wrote: »

So you have cleared £12k off your mortgage in a year

No, they haven't. They put down an unspecified deposit, so they've gone from some-unknown-amount-but-less-than-149K to 137K.

slapmatt

tturnstill1988 wrote: »

Hi all
Silly question probably but is this a common thing?

Taking out a mortgage is a means to an end, it allows you to purchase a home you wouldn't otherwise be able to afford, however generally most people want to minimise the debt they have.

Crashy_Time

Gwendo40 wrote: »

In what way does taking on a s***load of debt that they can't afford constitute ''doing very well''?

OP I would be very sceptical about the fantasy valuations given out by EA salesmen touting for business, you may have made the property more saleable but I doubt you've added over 30% to the value unless you've substantially extended it.

Good advice. I hope the "other investment" isn`t BTL.....:)

tturnstill1988

Hi all

Thanks again for the replies. Really do appreciate people taking the time to respond

Starting to really sound like a bad idea then! We have some debts and would need around 15/20k to clear this. So realistically that!!!8217;s all we!!!8217;d want to get hold of. Getting a loan for this is out of the question.

We don!!!8217;t want money for cars holidays and all that jazz.

We don!!!8217;t want to move but do want to pay off our debts so this is why I thought of this idea. I guess the only other option which wouldn!!!8217;t be preferred but may well Be more sensible one(?) would be to sell this house and then buy a house of similar value to this when we first bought it (around 150k then) and pocket any change by putting down just the 12k we have paid off our mortgage already through deposit and repayments ?

Gary123456790

tturnstill1988 wrote: »

I guess the only other option...would be to sell this house and then buy a house of similar value to this when we first bought it...

You will pay a fortune in estate agent and solicitor's fees. It would be a much better idea to look at your monthly outgoings and put all money possible towards paying off your debt while also paying your current mortgage.

You're trying to save money by spending money...

Fosterdog

tturnstill1988 wrote: »

Hi all

Thanks again for the replies. Really do appreciate people taking the time to respond

Starting to really sound like a bad idea then! We have some debts and would need around 15/20k to clear this. So realistically that!!!8217;s all we!!!8217;d want to get hold of. Getting a loan for this is out of the question.

We don!!!8217;t want money for cars holidays and all that jazz.

We don!!!8217;t want to move but do want to pay off our debts so this is why I thought of this idea. I guess the only other option which wouldn!!!8217;t be preferred but may well Be more sensible one(?) would be to sell this house and then buy a house of similar value to this when we first bought it (around 150k then) and pocket any change by putting down just the 12k we have paid off our mortgage already through deposit and repayments ?

You'd be better off putting a post on the debt free wannabe board and include an SOA details all of your income and outgoings and then you will get advice on how to save some money and clear your debt. If you are already struggling to meet your current repayments on debt then you would fail an eligibility for a bigger mortgage.

tturnstill1988

Hi

We!!!8217;re not currently struggling to repay anything. We have a good income between us. Higher than the average wage. Our debt is from years ago when we were younger and more stupid and as much as I!!!8217;d like to pay it all off now, we are just making monthly repayments and getting charged interest on top of that for the repayments!