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Additional borrowing on mortgage, how much can we have?
nomi01
Posts: 463 Forumite
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
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
🎄PAYDBXMAS21 #11 £11,300/£11300
Target met.
💥PAYDBXMAS22 #11 £5000/£5000 target met.
PAYDBXMAS23 #26 £5000/£5000 paid
Target met.
💥PAYDBXMAS22 #11 £5000/£5000 target met.
PAYDBXMAS23 #26 £5000/£5000 paid
0
Comments
-
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.0 -
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.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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