Further advance on existing mortgage

alunrw | 16:23 Thu 05th Jan 2006 | Business & Finance

2 Answers

Can anyone help please regarding this ? On checking the website of my mortgage lender they state " Borrow up to 95% of the value of your home (including any existing mortgage commitment)" - does this mean that they take into account the current mortgage amount outstanding and reduce it from the valuation prior to the 95% applying, or
does it mean that you can feasibly borrow 95% of the TOTAL value as a further advance - I would guess the former but anyone advise please? its just that the term "including" has confused me in this case (Its the Alliance & Leicester if thst helps)

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Loosehead

It means a total borrowing of 95% of the value. So if your house is 100k and you have a mortgage for 50k you can borrow a max of anothe 45k. Beware though they may demand an indemnity for this high a percentage. The total you borrow will also have to fit within the standard multiple rules of the lender so you can only borrow more if you earn enough.

alunrw

Question Author

Thanks for the reply, thats what I thought,

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