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  • FIRST POST
    • Time to Change
    • By Time to Change 11th Jan 18, 4:42 PM
    • 6Posts
    • 24Thanks
    Time to Change
    Additional Borrowing after payment off mortgage
    • #1
    • 11th Jan 18, 4:42 PM
    Additional Borrowing after payment off mortgage 11th Jan 18 at 4:42 PM
    Im after some advice as I can't find any info online without speaking to lenders.

    I paid of my mortgage quite some time ago however we would like to do some building work on our home and for that we would need to borrow some money (approx £40k). Loan interest rates for this amount is quite high so we wondered if we can apply for a small mortgage?

    Is this possible once the house has been paid for?
Page 1
    • kingstreet
    • By kingstreet 11th Jan 18, 4:55 PM
    • 32,620 Posts
    • 17,560 Thanks
    kingstreet
    • #2
    • 11th Jan 18, 4:55 PM
    • #2
    • 11th Jan 18, 4:55 PM
    Yes. It's a remortgage of an unencumbered property.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Time to Change
    • By Time to Change 11th Jan 18, 4:58 PM
    • 6 Posts
    • 24 Thanks
    Time to Change
    • #3
    • 11th Jan 18, 4:58 PM
    • #3
    • 11th Jan 18, 4:58 PM
    thank you king street, would I just approach lenders as normal and states its a remortgage?
    Im assuming that I'll get the same rates as those with a mortgage and switching mortgage providers?

    I didn't want to approach lenders having to answer lots o Qs if it wasn't possible etc

    Thank you!
    • kingstreet
    • By kingstreet 11th Jan 18, 5:13 PM
    • 32,620 Posts
    • 17,560 Thanks
    kingstreet
    • #4
    • 11th Jan 18, 5:13 PM
    • #4
    • 11th Jan 18, 5:13 PM
    Some lenders don't like unencumbered remortgages and won't offer the 'free legals' deal they would if there's an existing mortgage.

    You should have plenty of lenders to go at and if you mention 'remortgage of an unencumbered property' in your opening phone call, you'll probably know more than the person answering the phone.

    Brokers like One77 and London & Country make a big thing about not charging fees, so you might like to think about having a broker do it for you.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Thrugelmir
    • By Thrugelmir 11th Jan 18, 5:50 PM
    • 56,757 Posts
    • 50,122 Thanks
    Thrugelmir
    • #5
    • 11th Jan 18, 5:50 PM
    • #5
    • 11th Jan 18, 5:50 PM
    Im assuming that I'll get the same rates as those with a mortgage and switching mortgage providers?
    Originally posted by Time to Change
    The lender has to cover their overhead costs. What you get offered will therefore factor this into account. The smaller the sum advanced the less profitable it will be for them. Set-up costs being similar irrespective of the amount applied for.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
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