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Equity out of the Home.


Ashz09

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http://www.bbc.co.uk/news/business-40117132

UK house prices fell for the third consecutive month in May, according to the Nationwide.

It was the first time that prices had fallen for three months in a row since 2009, the building society said.

Prices dropped 0.2% in May, while the annual rate of price growth slowed to 2.1% - the weakest pace for almost four years.

Nationwide said it was further evidence that the housing market was "losing momentum".

 

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45 minutes ago, Ashz09 said:

Well I just rang the Company and there offering 1.9% Mortgage. Sounds quite reasonable with no fee.

I'm confused though as I brought my house for around £83,000 (Was valued around £87,000) now worth £93,000 according to Zoopla.

They quoted it's worth £103,000 according to a Halifax Database (I'm with Leeds Bank) and that's the amount they'll use. That's a silly amount. I'm guessing it's a good thing that it's valued much more but doubt I'll ever sell it for that... 

Didn't you say you lived in Coalville?

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This is a Re-Mortgage of my house. Does that still matter if they price it as a lot more forgot to mention that part.

I live in Alvaston just of London Road on Allestree Street. It's a 2 bedroom terraced House.

The reason why I'm guessing it's better as it puts me in another LTV band.

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44 minutes ago, Ashz09 said:

This is a Re-Mortgage of my house. Does that still matter if they price it as a lot more forgot to mention that part.

Of course it matters, how would you pay the re-mortgage back if you had to sell and couldn't get all the money from the sale?

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2 minutes ago, RoyMac5 said:

Of course it matters, how would you pay the re-mortgage back if you had to sell and couldn't get all the money from the sale?

Good point. Shall I tell them I want it valued less then? You'd think every Mortgage place would have the same search filter.

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Just now, Ashz09 said:

Good point. Shall I tell them I want it valued less then? You'd think every Mortgage place would have the same search filter.

Depends on whether you are remortaging for the full £103k. If you had to sell and could only get say £95k - would you still owe the bank money? That's the key question

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1 minute ago, Ashz09 said:

Good point. Shall I tell them I want it valued less then? You'd think every Mortgage place would have the same search filter.

Don't take this the wrong way, but I'd suggest you talk to a mortgage broker - one that doesn't charge a fee, say L&C

https://www.landc.co.uk/remortgage/

You need some advice on the best (or safest) way to borrow money. I'm not sure how much equity you have in the property (and neither are you tbh) but re-mortgaging and getting a larger mortgage shouldn't be done lightly. Getting a lower rate mortgage for lower repayments is different. :)

Or maybe ask or look for for advice on Money Saving Expert forum

http://forums.moneysavingexpert.com/forumdisplay.php?f=15

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3 minutes ago, Ashz09 said:

Good point. Shall I tell them I want it valued less then? You'd think every Mortgage place would have the same search filter.

It's only a problem if you intend to / have to sell up during the period of the new mortgage. if you're setting up a 3 year fixed, say, but have no intention of moving for at least that long, it doesn't matter because you'll be starting again at the end of the fixed period and the valuation will have changed for your next mortgage.

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Just now, Wolfie said:

It's only a problem if you intend to / have to sell up during the period of the new mortgage. if you're setting up a 3 year fixed, say, but have no intention of moving for at least that long, it doesn't matter because you'll be starting again at the end of the fixed period and the valuation will have changed for your next mortgage.

Yes. But that's the point, you don't know whether you might have to change jobs, or lose your job, or you get seriously ill, etc and have to sell.

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On ‎03‎/‎05‎/‎2017 at 09:32, Ashz09 said:

Hi All,

For the 1st time I'm Re-Mortgaging soon. I'm thinking of taking some Equity out of the house. For argument sake say the house is worth around £90,000 (This includes the Solar Panels and the Doors I've purchased) and I've got a current Mortgage of around £72,000.

How much would I be able to take out of the Home and do I have to pay Interest or would I have to pay a fee?

Any help or input will be appreciated as I have no idea!

I've gone back to the first post. You don't say why you want to re-mortgage?

If you need to borrow money it might be easier and/or cheaper to get a personal loan - there's some available from 2.8% APR (M&S loans). Or whether you need a short term loan and so something like a credit card balance transfer would do.

Or if you're looking to lower your mortgage repayments as now your LTV will allow you access to lower rate mortgages?

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I've arranged for a Mortgage Broker or at least going to visit one. I've got until the end of August anyway. No intention of selling just yet.

Hopefully if I do get made redundant there is help out there! I'm not looking on taking any equity out of the house now.

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It doesn't matter what they value it at. you can still increase the size of your mortgage if you want just don't have the total balance exceeding the actual value of the house.

It doesn't matter of they valued it at 250k, and it had a real a value of 85k, but still only wanted a further 10k taking the balance to 82,000 then you aren't in negative equity. 

Work out how much that extra borrowing will cost you over the length of the term of your mortgage and any penalties for paying off the solar early.

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5 minutes ago, RoyMac5 said:

I've gone back to the first post. You don't say why you want to re-mortgage?

If you need to borrow money it might be easier and/or cheaper to get a personal loan - there's some available from 2.8% APR (M&S loans). Or whether you need a short term loan and so something like a credit card balance transfer would do.

Or if you're looking to lower your mortgage repayments as now your LTV will allow you access to lower rate mortgages?

It's because my fixed rate is coming to an end in August. I'm currently on 5.4%.

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20 minutes ago, Ashz09 said:

It's because my fixed rate is coming to an end in August. I'm currently on 5.4%.

Okay.

Well my point of view would be have a look on MSE forums, there's lots of advice on there about remortages. Try ringing L&C.

But also you need to know how good a credit risk you are. Have you checked on sites like clearscore.com or noddle.co.uk where you can sign up for free to check on your credit history? You need to know if there's anything that might stop you getting a good rate. Edit: don't fall for thinking that a 'credit score' is the same as being a good credit risk though, they are different.

I don't know if your fixed rate has an early repayment charge, but if it doesn't then you could look for a better rate now as 5.4% APR seems quite high. Also if house prices are starting to fall then the sooner you remortgage the easier it might be?

 

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47 minutes ago, Ashz09 said:

It's because my fixed rate is coming to an end in August. I'm currently on 5.4%.

Oh and I think it's often easier (but I don't know how it compares financially) to re-mortgage to a new product (mortgage) with your current lender (not as many checks I believe)?

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Thanks for the advice RoyMac to be fair I might stay put as they offer competitive rates etc.

 

My credit score is in the good-Excellent category thankfully but like you said it may be different in rates factors.

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21 hours ago, RoyMac5 said:

Yes. But that's the point, you don't know whether you might have to change jobs, or lose your job, or you get seriously ill, etc and have to sell.

Quite right & of course I have no idea what his circumstances are with job security etc. It's not as if you could inflate the value beyond a reasonable figure anyway or the bank would smell a rat and insist on a new valuation.

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