Hello,

My wife & I just applied for a remortgage, which following a survey was declined as the survey came back with a valuation on our property of the same amount as we wished to borrow. We'd lined ourselves up with at 90% LTV mortage, whereas now this is a 100% LTV mortgage and is outside the realms of what they are offering. Whilst the houses on my estate are not selling like hot cakes, they are holding their value.

I wanted 90% to consolidate existing debts of around £14000.00.

I was advised that whilst that may be the case in respect of what houses are selling for, the surveyor has to protect the lenders risk and therefore undervaluations are commonplace in the current climate.

So I need to move fast. I have spoken to my current lender and they may be able to offer me a better rate, but an option is releasing some equity in the form of a loan that will run alongside my mortgage. If this is accepted we will be about £400.00/month better off. Thing is now that I am out of my discounted term, my mortgage is a SVR tracker as will be the loan and if rates go up but values decrease we'll be in a bit of bother, although we won't be tied in and will be able to have another go atthe remortage thing.

I am very tempted, as it will achieve what I want it to do. Do you think that I should go down this route as it seems like the only option given the valuation?

Thanks