Remortgage - good or bad idea?

[Skyfire]

I have a house worth 50k. I want to remortage it for 40K at say 5% interest, does this mean that if house prices go up I would be paying back 40K+5% interest + new value of the house or just the 40K+5%? Also, does it mean legal fees or not?

 

[Immsy]

Just the initial 40k + interest. Price of house is irrelavant

 

[schnipps]

I have a house worth 50k. I want to remortage it for 40K at say 5% interest, does this mean that if house prices go up I would be paying back 40K+5% interest + new value of the house or just the 40K+5%? Also, does it mean legal fees or not?

A said you are borrowing 40k, thats all you pay back + interest. There will be legal fees yes unless you just arrange a different deal with your current mortgage provider. The fees vary, I had a quote for £350 from a solicitor to complete a mortgage transfer etc, other quotes where higher. There are plenty of banks that do fee savers and cash back deals so you can get around the fees. I know for a fact northern rock give you £1000 cash back on completion with most of their mortgages, you only pay ity back if you change your deal within the set time, so you might be locked in for 3 years, if you want to remortgage again you would be expected tp pay the £1000 back. There are loads of deals

 

[Shifter_Hull]

try Direct line honestly if you thinking of a remortage