Mortgage advice

[Aydogflipper]

Hi guys,

Just wanting a little advice regarding a remortgage on my house.

My previous deal expired last summer, which was a tracker with the Halifax.

Had two evaluations done on the house this week, and both came in at £145k - £150k. Mortgage amount owing is £87k. I am considering a five year fix due to expecting interest rates to rise at some point in the near future. I am also wanting to take some money out of the property; this is to clear debts and have a little cash for my wedding etc.

The figures i have been working on in my mind are as follows: house value of £150k and mortgaging £112k. This should then put the LTV just under 75%, if my maths is correct. Basically that would mean i can take £25k out from my house. Not sure if that is possible to do so this is really where i am needing the advise.

Any help is much appreciated.

Regards

Adam

[Sarnie]

Aydogflipper said:

Hi guys,

Just wanting a little advice regarding a remortgage on my house.

My previous deal expired last summer, which was a tracker with the Halifax.

Had two evaluations done on the house this week, and both came in at £145k - £150k. Mortgage amount owing is £87k. I am considering a five year fix due to expecting interest rates to rise at some point in the near future. I am also wanting to take some money out of the property; this is to clear debts and have a little cash for my wedding etc.

The figures i have been working on in my mind are as follows: house value of £150k and mortgaging £112k. This should then put the LTV just under 75%, if my maths is correct. Basically that would mean i can take £25k out from my house. Not sure if that is possible to do so this is really where i am needing the advise.

Any help is much appreciated.

Regards

Adam

It's certainly feasible. I'm a broker, drop me a PM/email if you'd like some help with this

[Aydogflipper]

Thank you, dropped you a PM.

[timbo999]

Aydogflipper said:

to clear debts

Borrowing money secured against your house to pay off debts doesn't 'clear' them - it may well reduce the rate of interest, but the repayment period is usual larger and in total you could possible be paying more.

I know you know this... I'm just saying!

[Aydogflipper]

timbo999 said:

Borrowing money secured against your house to pay off debts doesn't 'clear' them - it may well reduce the rate of interest, but the repayment period is usual larger and in total you could possible be paying more.

I know you know this... I'm just saying!

It isn't quite as clear cut as just debts.

It's money that I owe to a person, without going into too much detail.

Thank you for the input.

[vinnie83]

Aydogflipper said:

It isn't quite as clear cut as just debts.

It's money that I owe to a person, without going into too much detail.

Thank you for the input.

Most mortgages allow you to overpay (max 10% of balance per year usually) so I always advise clients who wish to consolidate debt to overpay by the saving made (minus some if you need to free up money) in order to counteract the extra interest that would have been paid by prolonging the debt term.

It can often result in not only the debt being cleared quicker, but the mortgage too - if you're disciplined enough to think that you're not missing the money now, you won't miss it if you set up a standing order for the overpayment each month, then it can chop your overall debt down rather quickly.

ETA I meant to quote the post above you!