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Remortgaging amount
parosfan
Posts: 5 Forumite
We currently have an interest only mortgage from Jan 2008.
Mortgage £295,000
Current value £435,000
We would like to access as much of the equity as possible to use as a deposit to buy another property. At this point it could be a UK property, or one in Australia.
Could we remortgage for say £410,000 (LTV 95% - wishful i know), pay £295,000 to current lender and then keep the rest ourselves for whatever we want?
Or how else can be access some of these funds?
Cheers all
Mortgage £295,000
Current value £435,000
We would like to access as much of the equity as possible to use as a deposit to buy another property. At this point it could be a UK property, or one in Australia.
Could we remortgage for say £410,000 (LTV 95% - wishful i know), pay £295,000 to current lender and then keep the rest ourselves for whatever we want?
Or how else can be access some of these funds?
Cheers all
0
Comments
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When you remortgage you can ask for as much as you want as long as you satisfy the lenders criteria (affordability, type of property etc). Then as you say, the old mortgage is paid off (if you move lender) and you get the difference.0
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What's your plan to repay the existing debt at the end of the mortgage term?
Could you afford the repayments on a £400k mortgage. Won't be on an interest only basis.0 -
Generally interest only max LTV is 75%, so perhaps at best additional borrowing of £31,250.0
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Thrugelmir wrote: »What's your plan to repay the existing debt at the end of the mortgage term?
Could you afford the repayments on a £400k mortgage. Won't be on an interest only basis.
Either way we will be switching to capital repayments so thats not a concern.
As for affordability on £400k, we are also good
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A capital raising remortgage may see you able to borrow 80%, perhaps 85% of the value.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.0
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