Additional borrowing on mortgage, how much can we have?

nomi01 · 23 May 2018 at 12:14PM

Hi,
We purchased our first house 2 yrs ago, for various reasons outside of our control, we gave amassed credit card debt and would like to consolidate.
So, before we bought the house it was valued at approx £156k. We paid £135k and had 10% deposit so actually have a mortgage for £121.5k.
I am wondering if I can borrow against the value of the house ie; £156k or the value of house price ie; £135k.
When I went online to my mortgage account, it has house value as £135k.
I am confused, should I challenge the listed value on my account or is it acurate?
Ideally, I would like to borrow against the higher value.
Can anyone clarify?
Thanks

[Deleted User] · 23 May 2018 at 12:30PM

The house value is the amount you paid for it.

If you want to remortgage, you would want to get an up to date value.

kingstreet · 23 May 2018 at 12:33PM

A further advance for debt consolidation may be permitted upto 80% or 85% of the value, depending on the lender.

I suspect you will need more than this.

Do you have an ERC if you leave your existing lender? You may find a remortgage to a new lender will achieve a higher loan to value.

Caz3121 · 24 May 2018 at 8:52AM

nomi01 wrote: »

so actually have a mortgage for £121.5k.

is your mortgage interest only? if not it should have reduced with the payments over the last 2 years

Additional borrowing on mortgage, how much can we have?

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