Applying for new mortgage whilst being paid as contractor via an Umbrella company

MWT

The improvement in your valuation helps you with the LTV, but it costs you more when you have to repay the equity loan, so the net effect is that it increases the amount of the mortgage you will need but reduces the LTV which should help you get a better rate.

It doesn't translate into cash that you can use though, so you can't deduct the equity from the mortgage amount.

With the new valuation, you still have to cover the existing mortgage balance, £142k and the repayment cost of the equity loan, now £48k, so you if you were doing this now you would need a new mortgage of around £190k, but it would be at an 80% LTV.

The outstanding mortgage balance will be lower than £142k when you get to the end of the year, so that will reduce the new mortgage, and of course the valuation of the house may be different as well by then, so that could go either way.