Reply to: Re-value house to get more equity out of it?

[Martin@AS Financial]

Yup, that's the way to do it. I remember watching one of the money programs a couple of years ago, bit like DIY SOS but with peoples finances with a black guy on it. He was helping an old couple slash their mortgage payments. They didn't seem that dodery and vacant but they wanted help as their they didn't think their mortgage was very good. Very good!?!?!? They were still paying over 9%!!! I nearly fell of my chair when they said it. Wish I could remember how the hell they got in to that state. I can only imagine it was a lifetime fixed or something. Can't help think they had a claim in their somewhere.

That is utterly scandolous. Mortgage rates a couple of years ago were not quite at a historic low but certainly on their way down. As you say, it must have been a lifetime fixed or quite possibly they had reverted to the lenders standard variable rate although I can't think of one that was that high.

[northernladuk]

I remortgaged after a revaluation a couple of years ago. Only reason I did it is that it would give me access to the best interest rates, that combined with a very small increase to my mortgage payments slashed the repayment timescale.

Yup, that's the way to do it. I remember watching one of the money programs a couple of years ago, bit like DIY SOS but with peoples finances with a black guy on it. He was helping an old couple slash their mortgage payments. They didn't seem that dodery and vacant but they wanted help as their they didn't think their mortgage was very good. Very good!?!?!? They were still paying over 9%!!! I nearly fell of my chair when they said it. Wish I could remember how the hell they got in to that state. I can only imagine it was a lifetime fixed or something. Can't help think they had a claim in their somewhere.

[Spacecadet]

I remortgaged after a revaluation a couple of years ago. Only reason I did it is that it would give me access to the best interest rates, that combined with a very small increase to my mortgage payments slashed the repayment timescale.

[NorthWestPerm2Contr]

IF you haven't got a clue about asset allocation or investing across all your assets then paying the mortgage probably does make sense.
I will be quite happy if I don't pay the mortgage off ever, why would I want to use up my entire IHT allowance with a totally illiquid asset ?

If interest rates do rise high, I will look at the return from offsetting my mortgage debt, alongside returns from other investments and shift accordingly but furiously paying off all the mortgage and then having no easy access to the equity seems a bad idea to me.

Totally get what you are saying there - it's a balancing game on knowing when to take money out and when to put it back in again...

[lukemg]

I think you need to think carefully about releasing equity in your house. Granted a mortgage is one of the cheapest ways of borrowing money you need to consider when you will end up paying your mortgage off. Might not be too much of an issue as your quite young but you don't really want to be still paying your mortgage in your mid to late 50's or beyond. When the kids grow up and start Uni you want them and yourself to be comfortable and no mortgage will certainly help.
.

IF you haven't got a clue about asset allocation or investing across all your assets then paying the mortgage probably does make sense.
I will be quite happy if I don't pay the mortgage off ever, why would I want to use up my entire IHT allowance with a totally illiquid asset ?

If interest rates do rise high, I will look at the return from offsetting my mortgage debt, alongside returns from other investments and shift accordingly but furiously paying off all the mortgage and then having no easy access to the equity seems a bad idea to me.

[SueEllen]

If you decide to stay with your current bank they may do a desktop valuation which tends to be very conservative. As they have no way of knowing about the rennovations you have carried out, this may result in a higher rate being offered. I would therefore ask your bank to do an internal inspection and not rely on their house price index or carry out a drive by.

+1

If you brought a "doer upper" and some major work needed to be done, if you push them they will come out and check it was done to an adequate standard. Then they will raise the value to those around you regardless of how much you spent on it.

[Pondlife]

....so I'm just unfit and embarrassed.

http://i.telegraph.co.uk/multimedia/...-L_786613i.jpg

[Pogle]

and a red nose. So if this was a comic relief year Pogle would be fine.

Unfortunately this is a Sports Relief year....

....so I'm just unfit and embarrassed.

[eek]

<cough>Guinea pig with antlers still on</cough>

and a red nose. So if this was a comic relief year Pogle would be fine.

Unfortunately this is a Sports Relief year....

[Pogle]

<cough>Guinea pig with antlers still on</cough>

yeah yeah I KNOW.......

[Pondlife]

I am just fascinated that some folk on here seem to be unable to go through a week without posting reams of dull stuff about the minutiae of their life

<cough>Guinea pig with antlers still on</cough>

[eek]

I am just fascinated that some folk on here seem to be unable to go through a week without posting reams of dull stuff about the minutiae of their life

I find it more worrying that I'm so bored I reply to the questions.....

[Pogle]

I am just fascinated that some folk on here seem to be unable to go through a week without posting reams of dull stuff about the minutiae of their life

[Martin@AS Financial]

coming up to re-mortgage time for house that I bought nearly 2 years ago. Is it worth me getting a new valuation for it so I can a) extract some equity and b) so I can improve my LTV?

We have spent over 20k in renovations + house will have increased a little.

Anybody done this recently?

If you do decide to remortgage to a new bank, they will carry out a survey to ensure your home is suitable security to lend on. This is often paid for by your new lender and will include a valuation.

If you decide to stay with your current bank they may do a desktop valuation which tends to be very conservative. As they have no way of knowing about the rennovations you have carried out, this may result in a higher rate being offered. I would therefore ask your bank to do an internal inspection and not rely on their house price index or carry out a drive by.

[barrydidit]

As eek says, mortgage company valuers don't give a tuppeny **** if you've spent 20K on farrell and ball paint. Extensions etc are a different matter but if it's still a 4 bed semi like it was when you started out then there's not much room for movement.

Furthermore, as at 26th April, the new mortgage market review regulations kick in meaning it's going to be even harder to take equity to spend on other things.