The people, amounts, property and circumstances are invented to explain a borrowing brief. No lender, rate, approval, completion or client outcome is claimed.
- Loan requested
- £850,000
- Loan type
- Remortgage
- Property type
- House
- Illustrative property value
- £1,300,000
- Equity after proposed loan
- £450,000
- Illustrative loan-to-value
- 65.4%
The equity figure is property value less the proposed loan; it is not a cash-release calculation. Existing debt and costs must be considered separately. The ratio illustrates arithmetic, not lending criteria or eligibility.
The borrower’s brief
Homeowners are reviewing a proposed £850,000 remortgage on a Chiswick house with an illustrative value of £1.3 million. Their current deal is approaching its end. They also have plans for energy-efficiency improvements, but the final works scope and funding decision remain open.
The question behind the loan
The total new mortgage is not the amount of cash released. Existing debt, charges and costs must be identified before discussing any additional funds. A hoped-for property value or future energy saving should not replace a current valuation or an affordable household budget.
Information to bring together
- Current mortgage balance, product end date and any redemption charges.
- Income, monthly spending and other secured or unsecured borrowing.
- A clear distinction between replacing existing debt and any requested additional borrowing.
- Property information, works estimates and relevant professional advice on the proposed improvements.
Where the assessment goes next
The refinance assessment should begin with the existing commitment and the reason for changing it. Any additional borrowing needs its own purpose and affordability assessment; no cash release or saving is implied by the equity arithmetic.
Discuss your own circumstances
A similar loan amount or property type does not mean the same finance is available. Income, commitments, credit history, the property and current terms need an individual assessment. Tell Jack what you want to achieve and any part of the plan that remains uncertain.
Prepared for Jack Cousins, Head of Mortgages at Lockhart Murphy. Updated 10 November 2026.
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