For people who due ?100,100 to your present mortgage lender, however get a unique home loan of ?120,000, you would certainly be kept having ?20,100000 additional, even though there might be individuals charges to pay personal loan San Antonio who would consume into you to definitely (a plan percentage to take out the brand new mortgage as an instance).
Because of the remortgaging to have a higher worth might possess ‘sold’ ?20,100000 of one’s equity, because you do now simply individual ?80,000 of the ?two hundred,100000 property value your house, unlike ?100,100000.
By the increase in the value of your house, your LTV has nevertheless dropped, providing use of reduced mortgage deals, however, you will be borrowing and you may paying rates of interest towards a high matter. Just make sure possible afford the highest repayments as opposed to overstretching oneself.