Found 23rd Nov 2009
Afternoon All,

Just a quick question about mortgages,

About 34 months ago we took a mortgage out for 84,000, but when we did our initial mortgage application we were given a mortgage promise of 88,000. Now my question is this we wanted to take another 4,000 and add it to our mortgage is that possible???

Thanks in advanced!

  1. Misc
  2. Mortgage
22 Comments

Short answer is maybe!
It depends on what the lender's valuation of your property was and what they think it is worth now.
It will also depend on what your salary is. Quickest way is to ring up your current lender and ask them.
However check with them how much this is going to cost you - generally £4k is going to cost you loads when you factor in the 20years worth of interest that you will be charged!!
You might be better off taking out a loan of £4k if you can afford the monthly repayments.

May need to have the house revalued as to its current market value

Yep, the house would need to be revalued to check what it is currently worth. Also the amount that you have paid back already will be taken into account. Was it a 100% mortgage you took, or did you have a deposit?

Original Poster

leet_first;6976397

Short answer is maybe!It depends on what the lender's valuation of your … Short answer is maybe!It depends on what the lender's valuation of your property was and what they think it is worth now.It will also depend on what your salary is. Quickest way is to ring up your current lender and ask them.However check with them how much this is going to cost you - generally £4k is going to cost you loads when you factor in the 20years worth of interest that you will be charged!!You might be better off taking out a loan of £4k if you can afford the monthly repayments.



Well the problem i got is my wife needs a car asap, as hers is on its last legs and its just not worth repairing...so need to get a car. Just doing some rough calculation 4,000 on our mortgage would increase our monthly payment by about £20-30...which is do-able...at this moment in time couldnt really afford to pay back large amounts (i.e. from bank loans)

civms47;6976425

Yep, the house would need to be revalued to check what it is currently … Yep, the house would need to be revalued to check what it is currently worth. Also the amount that you have paid back already will be taken into account. Was it a 100% mortgage you took, or did you have a deposit?



it wasn't a 100% mortgage it was a 75% mortgage

Banned

quicker and better to ring your mortgage company

Original Poster

csiman;6976522

quicker and better to ring your mortgage company



will be this evening as im at work at the moment and dont really want to be making calls like this where everyone can hear, but just wondered if anyone knew, or had done this before

Banned

Abz;6976555

will be this evening as im at work at the moment and dont really want to … will be this evening as im at work at the moment and dont really want to be making calls like this where everyone can hear, but just wondered if anyone knew, or had done this before


get your wife to ring :?

might be ok without a revaluation as its a small increase and you only had a 75% LTV

good luck! :thumbsup:

You won't know until you ring your provider, but take note: they will probably try to remortgage you, rather than add a bit more on the original sum (some do, some don't) BUT, if you got a cracking deal the first time round, you'll end up losing it by remortgaging. We moved mortgage about the same time (before the **** hit the fan economy-wise) and got a great deal at 0.19% above BoE base rate for life, smashing when the rates dropped. Last month I wanted to get my hands on some quick money, and they (the bank) were bending over backwards to give it to me, as long as I completely remortgaged, meaning taking their latest best deal, something like 5% above base. NOT good. Didn't bother. Would have cost extraordinarily more than it was worth. But as I said, it'll depend on your lender. Some have an openplan facility, like an overdraft at mortgage rates... Good luck!

Original Poster

csiman;6976588

get your wife to ring :?might be ok without a revaluation as its a small … get your wife to ring :?might be ok without a revaluation as its a small increase and you only had a 75% LTV good luck! :thumbsup:



She's at work as well,

depends on how much the value of your house has fallen in the last 34 months

are you still tied in to your initial deal?

Original Poster

Penny Saver;6976598

You won't know until you ring your provider, but take note: they will … You won't know until you ring your provider, but take note: they will probably try to remortgage you, rather than add a bit more on the original sum (some do, some don't) BUT, if you got a cracking deal the first time round, you'll end up losing it by remortgaging. We moved mortgage about the same time (before the **** hit the fan economy-wise) and got a great deal at 0.19% above BoE base rate for life, smashing when the rates dropped. Last month I wanted to get my hands on some quick money, and they (the bank) were bending over backwards to give it to me, as long as I completely remortgaged, meaning taking their latest best deal, something like 5% above base. NOT good. Didn't bother. Would have cost extraordinarily more than it was worth. But as I said, it'll depend on your lender. Some have an openplan facility, like an overdraft at mortgage rates... Good luck!



they are who??? which lender??:thumbsup:

Original Poster

hassony;6976629

depends on how much the value of your house has fallen in the last 34 … depends on how much the value of your house has fallen in the last 34 monthsare you still tied in to your initial deal?



like i said we only got the property about 4 months ago...and i know the value hasnt fallen...its actually gone up by 1%...as properties in on the same road have all gone up

Abz;6976634

they are who??? which lender??:thumbsup:



eh?

No one but your mortgage company can answer this question.

Original Poster

Penny Saver;6976654

eh?



which lender where you trying to get extra moneys off, before they tried to get you to re-mortgage

Woolwich.

Abz;6976640

like i said we only got the property about 4 months ago...and i know the … like i said we only got the property about 4 months ago...and i know the value hasnt fallen...its actually gone up by 1%...as properties in on the same road have all gone up



are you still tied in to the initial deal?

if you are, than the bank will only loan you the £4000 as an extra loan (current interest rate. rather than the one you are paying)

if not, than the you will have to get a new deal, and might have to pay arrangement fees and valuation fees

Original Poster

hassony;6976713

are you still tied in to the initial deal?if you are, than the bank will … are you still tied in to the initial deal?if you are, than the bank will only loan you the £4000 as an extra loan (current interest rate. rather than the one you are paying)if not, than the you will have to get a new deal, and might have to pay arrangement fees and valuation fees



yeah im in the initial deal still...

Abz;6976726

yeah im in the initial deal still...



check with the bank, but I think they will only give you the 4k as an extra loan, which you can add to the mortgage once your current deal finishes

Original Poster

hassony;6976780

check with the bank, but I think they will only give you the 4k as an … check with the bank, but I think they will only give you the 4k as an extra loan, which you can add to the mortgage once your current deal finishes



will try ringing them tonight and then let you all know what happens...


Thanks All for your help!!!:)

Abz;6976726

yeah im in the initial deal still...



If you were tied into a rate on the main mortgage account, the mortgage company I worked for never asked customers to remortgage the whole account. What happened is any extra amount they borrowed was done at a different rate. If you only moved into the property 4 months ago, they might ask you to wait 6 months before you apply for extra borrowing. It would be at the discretion of the lender, but if they valued the property less than 6 months ago, they might not want to re-value. There will probably be a fee for extra borrowing, but they usually let you add this on to the loan amount.
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