Finance question help needed

[Queenie6655]

Hello

Could some of you please give me some info and let me know if this idea is possible at all

Sorry firstly to seem so clueless
I have a house worth 180 k
80k equity in it
Ten years left on mortgage

Do you think I would be able to release this equity? 80-100k?
By a remortgage maybe extend the mortgage to 20 more years ?

I am building a house and it just came to my mind the other day this could be an option

Sorry if this sounds like a ridiculous question

Thank you all xxxxx

Aprox 80k equity at least
Just to add xx

You wouldn't be able to release all the equity as that would be the same as having a 100% mortgage, which aren't available any more (I don't think).

How much you could release would depend on whether you earn enough to qualify for the increased mortgage.

You could possibly borrow more and extend the term depending on age, but you still wouldn't be able to borrow 180K on a house worth 180K.

Ah yes ok
Excuse the silly question

So it could only be a small amount even though there is 80k equity in it !?

Max loan to value is approx between 80 and 95% atm. The higher the ltv, the higher the rate is likely to be. You would probably have fees to change deal too.

So for example 80 per cent of the total price of the property ?

So what could that look like?

Again sorry to sound like an idiot
Just started looking into this revelry

Recently

80% current market value. So around 150k total, assuming affordability, credit checks etc.

You’d have to phone your mortgage lender. They will all have different criteria. Are there any online calculators you could use to give you an idea. They will also want to know if you can afford the monthly payments too

Ah my gosh ok

So that is what I could potentially release in cash from the house ??

Fantastic

I was hoping 80k may be possible

Did the online calculator but didn't want to get hopes up

If you call your mortgage company they'll be able to tell you

Ah yes of course

Plus I can only extend to maybe 20 years

Calling London and country in the morning
Tried them on Friday and got answerphone

@Queenie6655

Ah my gosh ok

So that is what I could potentially release in cash from the house ??

Fantastic

I was hoping 80k may be possible

Did the online calculator but didn't want to get hopes up

No you've misunderstood. You can't release £80k as you still have a mortgage of £80k. Depending how much you earn and your lenders criteria, youMAY be able to borrow £150k TOTAL, so another £70k on top of your existing mortgage.

That would be £150k in total though, and you said that you already owe £100k on your mortgage, so you would only be able to release an additional £50k

Ok

Makes sense

Thanks so much
Will call them in morning again

So helpful 🙏🙏🙏

OP if you have 80k equity in it you won’t be able to release 80k. We released equity for a project when we remortgage and it was super simple. As the house was valued higher than we paid it, we release a % so our ltv ratio was ok. We didn’t change our term.
If you have a mortgage advisor ask them.

But you already have 80k, so additional 70k available potentially but would depend on individual circumstances etc etc. Could you afford an increase in payments?

@newuserolduser

OP if you have 80k equity in it you won’t be able to release 80k. We released equity for a project when we remortgage and it was super simple. As the house was valued higher than we paid it, we release a % so our ltv ratio was ok. We didn’t change our term. If you have a mortgage advisor ask them.

Sorry but why not ?

Would it be more like 50k?

Will ask this all in the morning when I call them
Just couldn't get through on Friday

Sorry above 50k is right, assuming 150k mortgage instead of 100k.

If you have 80k in equity you can't release all of it. As then you would have no deposit in the house so it would be a 100% mortgage which aren't available anymore

Many thanks xxxxx