That thing where you get money from your mortgage...

[Tizzylizzy]

Right. House is 'worth' on paper £250,000. Have £200,000 mortgage. Current lender said 'no' to accessing money from equity (can't remember what it's called). But we are due to remortgage in Sept and would love an extension. Would cost about £20,000. What are our chances? Hubby said something about LTV?

Drawdown?

Actually, re-reading properly, it sounds as though what you will need to do to remortgage is get it revalued by the new company, and take a new motrgage for a higher amount. Is this wise?

If your loan to value (LTV) is less than 80% then you are unlikely to get the best interest rate deals. £200k on a value of £250k is 80% but £220k mortgage on £250k value is 88% so you may only be offered the higher interest rate deals which means higher monthly payments.

Banks are concerned about falling house prices so your mortgage would appear risky if the loan is almost equal to the value it could be sold for.

If your house was valued at £240k (and most banks are lowering values after surveys) then a £220k mortgage would be over 90% and most banks don't want to loan at that level.

Thanks guys. Will get saving. Seems like the most sensible option!

Banks are expecting a property crash of 25 - 30% in the next couple of years
DO NOT mortgage above that level unless you have to
or the house is cheap enough to be at its bricks and mortar price
(like the one I heard of recently, large victorian end of terrace three bed, long garden, side access, walking distance to city centre £134,000)