Remortgaging

Mashford

Hi everyone.

I'm just looking for a little advice please before I speak with my existing mortgage lender.

A little background about my house, we've lived in our house since 2011 and 4 years ago we'd reached a point where we were considering either moving into a bigger place or extending our current house. Long debates were had and we decided that we would stay put and extend our house. To do this we borrowed some of the equity that we had built up in the house to fund the work and the end result is that we now have our original loan for the house as well as an additional loan that funded the extension.

I'm reading about BOE base rate increasing and although we are 4 years into our current 5 year fix I'm going to start weighing up the options in terms of remortgaging earlier than planned to secure a better rate. Obviously early repayment charges etc to factor into this decision as well.

My question for you guys is when I am looking at the LTV, am I able to combine the value of the 2 loans or am I stuck with only remortgaging the original loan and leaving the additional one to run its course? 

Thanks in advance
Mark

K_S

Mashford said:

My question for you guys is when I am looking at the LTV, am I able to combine the value of the 2 loans or am I stuck with only remortgaging the original loan and leaving the additional one to run its course? 

Thanks in advance
Mark

@mashford For a remortgage (changing lenders), you will have to remortgage both parts so just combine the value of the 2 parts and use that for your LTV. Once the remortgage completes, you will end up with a single part with the new lender.

Mashford

Thanks @K_S