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Remortgage

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Hello

I am looking for a mortgage broker who can help with ou remortgage - we are currently on a tracker on interest onlyh with IF and want to release capital.

We have spoken to them and they have said they could only offer us an extra £9k, but we have a mortgage of £81k and they only value our property at £96k. Other homes in the area are going for £110k + and we feel ours in worth more.

We want to clear our debts and feel our current mortgage company are being very unhelpful- can anyone suggest a good broker?

Comments

  • lisyloo
    lisyloo Posts: 30,077 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    and they only value our property at £96k

    When was this valuation done, was it recent?
    Other homes in the area are going for £110k + and we feel ours in worth more.

    Do you actually mean sold for? Where did you find the sale price information?
    Or do you mean other homes are advertised for that amount?
  • The IF advisor told us the valuation is based upon the Halifax 'assumption' on the system using average price rises.

    The other homes are actually sold for this price and can be seen on various websites. In actual fact, our neighbour recently moved in and paid £109,500.

    Any advice and help would be greatly appreciated
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Must admit to not liking the term "release capital"- it should be called "borrow extra ( against security of equity)"

    anyway , there are lenders that offer free remortgage valuations, if you really want to try it out with a different valuer , although some will also use "existing data"

    Most lenders limit to max 90% LTV on remortgage , otherwise rates or fees start increasing ( what rate are on currently on), although some will go higher LTV , but this will restrict your choice

    remember to take into account and fees and poss penalties from existing lender

    Fees from new lender ( some fee assisted deals, but rates slightly higher, and many, but not all , still have some fees)

    Penalties ( if any) on existing unsecured debts

    Risks of moving secured debts to a secured basis

    You say currently on interest only - what plans have you to repay the debt ( if on interest only to keep repayments down, is adding to it a good idea)

    IF have a history of lending higher multiples, would you meet all other lenders' criteria
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Beddie
    Beddie Posts: 1,010 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    As said above - you are not "clearing" your debts, you are adding them to your mortgage and securing them against your home. Could you not bite the bullet and just keep paying until they are cleared?
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