ChatterBank12 mins ago
My son has a mortgage on his house which is at least 30,000 in equaty. Apart from it being a very bad time to sell a house, coupled with the fact that he'd like to carry on living in it, is there any way he can gain access to some of the equaty (like 15,000 for instance) without actually selling it?
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Lizzy, how much is the house worth? Depending on the value, he may have problems with a remortgage if it doesn't fall into the loan to value criteria. He will have to check all the lastest rates, but i know quite a lot of banks require a LVT of max 70%. Because your son wishes to release funds this may not be feasible.
The best place to start is with the Company he has his existing mortgage with. As they already have the first charge over the property the fees will be cheaper. A lot will depend on the size of his existing mortgage and the percentage of the equity left after the extra loan. Also the total borrowing and repayments will have to meet normal lending criteria in relation to annual salary and income/expenditure.
The house is worth around 80-90,000 (we're in West Yorkshire) and there's 40,000 owing on it. Another problem might be the fact that my son has had his hours at work dropped right down to 16 hrs a week which obviously doesn't help much. The mortgage is just 300 per month so there's never been any problems with regards to paying it and its been bang on time for the last 11 yrs (don't know whether that makes the mortgage company sympathetic with regards to giving a second mortgage.