i.e cover the cost of switching lenders and £40,000 on top.
this entirely depends on your level of equity and affordability.
1st off the total including the additional borrowing cant be more then 80%, in the current climate mainstrean lenders will not allow this, niche lenders may, however they will make sure they bleed you dry with extortionate fees and interest rates.
2nd affordability, 40k is a relatively small figure however you must again be able to sure that you will be able to afford the higher payments, this requires that you fit into the lenders own affordabiliuty calculator.
Bear in mind the further you stretch either of these conditions the worse a deal you will get from the lender as you will be increasing risk proportionatly (in the eyes of the lender)
also if your are still within a tie-in period with your current lender you will need to pay Early Repayment Charge to release yourself from your current deal, this fee can be quite high (3-8k)
September 2nd, 2010 at 8:59 pm
As long as your total loan does not exceed 80% of the value of the house.
References :
September 2nd, 2010 at 9:18 pm
Depends if the property is worth it or will be when the improvements are done. The property market is falling and lenders are very picky. You will be lucky to get much over 75% – 80% loan to value ratio and they will check your ability to pay very carefully.
References :
September 2nd, 2010 at 9:35 pm
Only if the house is worth the extra cash back. For example, if your house is worth £200,000 and your mortgage balance is £100,000, you could remove some of the equity in cash (say £40,000), thereby borrowing £140,000 and paying off the first mortgage. However, if your balance was £170,000, you could not take £40,000 since you only have £30,000 in equity (how much of the 30K you could take would depend on how high the bank would go in terms of lack of equity – if the bank required equity of at least 5%, in this case, you could only borrow up £190,000).
References :
September 2nd, 2010 at 9:49 pm
FORTYYYY GRAND on top? That’s some level of improvement!
It’s hard to get a re-mortgage i.e. more cash out of your current lender right now. Some that think they aren’t going to get paid, are asking for the entire outstanding amount back in one payment!
Looking to change lenders and borrow, is likely to ring alarm bells with them now. They just aren’t interested in lending, and if you LOOK LIKE you may be struggling, or have any uncertainty about your financial state now, or in the future, expect your credit rating to take a big hit.
I would say sit tight for a year until things look brighter.
References :
September 2nd, 2010 at 10:08 pm
this entirely depends on your level of equity and affordability.
1st off the total including the additional borrowing cant be more then 80%, in the current climate mainstrean lenders will not allow this, niche lenders may, however they will make sure they bleed you dry with extortionate fees and interest rates.
2nd affordability, 40k is a relatively small figure however you must again be able to sure that you will be able to afford the higher payments, this requires that you fit into the lenders own affordabiliuty calculator.
Bear in mind the further you stretch either of these conditions the worse a deal you will get from the lender as you will be increasing risk proportionatly (in the eyes of the lender)
also if your are still within a tie-in period with your current lender you will need to pay Early Repayment Charge to release yourself from your current deal, this fee can be quite high (3-8k)
References :
experience as a mortgage advisor
September 2nd, 2010 at 10:54 pm
As many have said this question cannot be fully answered without further details. Theoretically yes but it will depend on.
Equity in your property.
Incomeaffordibility.
Credit history _ will determine rate.
If the criteria is satisfied then this may be an option for you. Try contacting a financial advisor who can ive you advise based on personal circumstances .
References :
Independant financial adviser