Remortgaging - Advice please: House value now VS amount to borrow

Hi,

Coming to the end of a fixed rate, and am looking for some advice.

We paid 505k for our house at the end of 2005, we currently have 465k outstanding on our mortgage. Have a house income of ca. 170k.

I'm wondering the following:

If our house value (which went up when we bought, but now the guess is that it's *about* what we paid for it) is LESS than the current 92% that banks are prepared to lend against houses - do we need to find the difference...

OR

...the bank looks at your income and will advance the amount based on that?

Might be a stupid question - but I'd be interested to know if anyone has any experience with this.

Thank,

DB

Re: Remortgaging - Advice pleaes: House value now VS amount to borrow

I dont understand your post as you already have a 465k mortgage. Do you want to borrow more to buy another house?

Re: Remortgaging - Advice pleaes: House value now VS amount to borrow

I think that DevilBoy is worried that he has to reapply for a mortgage now that the fixed rate is ending?
If you stay with the same lender - there will be no problem with the loan being over 92% of the house value. You will just go onto their variable rate - which hopefully is lower than your current fixed rate.
Ther may be a problem if you want to switch to another lender to get a better rate.They may not take you on because of the high loan to value ratio.

Re: Remortgaging - Advice pleaes: House value now VS amount to borrow

Hi Bacchus,

The amount that we may be able to be advanced by the bank is one of the things that I'm definitely interested in - and I'm wondering if anyone has any experience with this...

thanks,

DB

Why do you want to borrow more?

Hi,

To see how much a bank MAY be able to give us - if we were to trade up.

Thought I'd try to find that out now, so if somewhere comes up that we fancy - at least we'd know how much we could get...

Thanks,

DB