How Much Can I Remortgage For?
How Much Can I Remortgage My House For?
There are a lot of factors surrounding this particular question, depending on if your house has increased in price and if you have released equity in recent years. Remortgaging is certainly becoming more popular as some people would rather improve than move!
Reducing your Loan-To-Value (LTV) often helps to get you a better deal, and it is this LTV aspect that can also determine the types of products that are offered to you when you come to remortgaging your house.
Here Is How To Calculate Your LTV Percentage
Firstly, you will need to find out how much your current mortgage is. Once you have found this out simply divide your outstanding mortgage amount by your property’s current value, then multiply the result you get by 100.
Your outstanding mortgage is £150,000.
Your property has been valued at £200,000.
150,000 divided by 200,000 = 0.75.
0.75 x 100 = 75 – so your loan-to-value rate is going to be 75%.
The lower your loan-to-value rate the more options that will open up to you for a remortgage deal.