Remortgage

Lilactree_2

Hello

I am thinking of remortgaging, is the amount (upto 95% LTV I believe but usually less) based on the total amount of the current mortgage or current valuation of the property ?

So for example if you owe 20K on a total mortgage is 50K, having repaid 30K and home valuation is 100K, and assume LTV of 90% is it 1)  (90% of 50K) 45K - 20K = 25K  or 2) (90% of 100K) 90K - 20K = 70K ?

Cheers

Caz3121

LTV = Loan to Value....amount borrowed v's the value of the property
don't think there are many 90% deals around currently
https://www.moneysavingexpert.com/mortgages/why-remortgage/

Lilactree_2

Thanks, are you saying :

(90% of 50K) 45K - 20K = 25K 

or

(90% of 100K) 90K - 20K = 70K

is right. Or something else?

MalMonroe

Hi, for what it's worth I'd advise you to really think very hard about this. In the past I've remortgaged twice. Had I not remortgaged at all I'd now be living in a large, three story Victorian semi with no mortgage or rent. Instead I'm in a rented council flat, having just come out of having a Debt Relief Order. I must admit that there was a marriage breakdown and divorce and I was very upset and mixed up for a long time. However, I would never advise anyone to remortgage unless there was absolutely no other way forward. Had I not remortgaged I could have sold and bought something else. I feel that I did it all wrong. Mortgage is a real millstone around your neck but remortgage is an even bigger one that lasts much longer, in my experience. Please do think very carefully. I would not do it again.