Remortgage before we've moved in?

J

jellybaby

Guest
Hi there,

Just looking for some advice on this if possible...

We bought last September - signed for mortgage of 315,000. House was 360,000, got help from the parents.
House due to be ready this Sept.

Would it be possible to remortgage our house already, before we've moved in, to the value of 335,000?

Has anyone else done something similar?

Thanks,
J.
 
Presumably you don't mean remortgage but rather alter the terms of the existing provisional mortgage? You should ask the lender or your broker about this.
 
If either your current bank or another one are prepared to lend you the increased amount then you can do it. I heard of people doing this in the last few years based on the increase in value on the house between buying off plans and the completion of the build,however with the current market this is less likely so unless your salary has gone up or some other significant improvement in your finances it may not be possible from a practical point of view,
 
Madangan said:
I heard of people doing this in the last few years based on the increase in value on the house between buying off plans and the completion of the build
Click to expand...
But as far as the lender is concerned the value in this situation is surely the purchase price so any increase in nominal market value in the meantime is presumably irrelevant?
 
correct Clubman

lenders will only offer on the purchase price or value which ever is the lesser

you also cannot remortgage a property you don't own yet, so you will have to wait until after you get your keys and move in before considering remortgaging (make sure you are not tied into an existing fixed rate with your present offer as you will pay a penalty to break out when remortgaging to another lender)


DeirdreL

www.rea.ie
 
ClubMan's right - the value of the house is almost irrelevant in this context, unless you're approaching a lender who will lend to a maximum of 92%. 335,000 required mortgage / 360,000 purchase price = 93% mortgage. If you're First Time Buyers, there's plenty of lenders who will offer up to 100%. You're not obliged to get your mortgage with the lender who originally offered you the 315,000, especially if they won't now amend this loan offer to 335,000 for you.

A bigger issue may well be whether or not you qualify for 335,000 on your incomes.

Liam D. Ferguson
www.ferga.com
 
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