We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

12 month re-mortgage

Rysut1994
Rysut1994 Posts: 1 Newbie
in Mortgages & endowments
Hi 

me and my partner are due to re-mortgage in 12 months time and just had a few questions for anyone else who may have been in a similar position. 

we purchased our home a year ago for 264K with around 80K deposit from the sale of a previous property with a borrowing amount of around 180K.

our household income is around the 40K mark, myself full time employment and partner full time self employed but cant work as much as she wants due to childcare.

we want to make extensive improvements so will want to release around 90K  and we believe our home is now worth around 290K

we want to release these funds but don't want our repayments to sky rocket! (current repayment £650)

does anyone in a similar situation have any real life examples of themselves doing this? 

I'm aware that interest rates are fluctuating at the minute but just trying to get a rough estimate 

thanks in advance!

Comments

  • kingstreet
    kingstreet Posts: 39,418 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A £270k mortgage doesn't appear achievable on the declared incomes.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,781 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You want to borrow £80K on top of the £180K you owe, on your estimated value of £290K?

    This all sounds too early. 

    You probably need to budget an extra £300 pcm on your current borrowing given today's rates.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • bluelad1927
    bluelad1927 Posts: 407 Forumite
    Third Anniversary 100 Posts Name Dropper
    What you are suggesting seems impossible

    As mentioned above getting 270k on 40k is not likely together with the LTV going up to over 90%

    270k over 25 yrs at todays rate is going to increase your mortgage by around £1000 (£1600 total)

    There are plenty of calculators out there to give a good idea
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 24 October 2023 at 12:25PM
    10% price rise after a year? Is it some special area in UK?
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.6K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.7K Work, Benefits & Business
  • 603.1K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture