remortgage time and I owe 93K if I tell them I owe 100K what happens to the 7K

wrx_2

As above Will I get the 7K back in the form of a cheque or will they just change the money I owe from 100K to 93K?

Ian_W

Provided you don't go above a certain % [90-95 I would have thought] of loan to property valuation you can release equity for a variety of purposes. They will ask how much you owe and if you tell porkies and get found out they'll probably refused your application and you'll lose any fees paid.
Quite silly really when you can tell them you owe £93K but want to borrow £100K with the £7k for.. a car, holiday, debt consolidation, home improvements etc, etc. If you do it that way the solicitor who does the remortgae will send the money to you, cheque or inter-bank credit, once the remortgage is completed.
Do bear in mind that if you're using the £7K for a short term purpose like a holiday you'll be paying for it for the remainder of your mortgage so it will cost you 2x it's value or more in interest. Gives a whole new meaning to the phrase "holiday of a lifetime"!!
HTH.

TangentMan

If you are remortgaging from lender A to B, then B will ask for a redemption statement. They don't expect your figure to be exact (although they may be curious about it being so far out) - and they will pay A the number shown on the statement.

As Ian says, if you simply ask B for an extra £7k i am sure they would be happy to oblige unless you go over an LTV limit.

wrx_2

I was going to go it alone using mortgage genie and the questions asked were how much is the property worth and how much do I currently owe, there was nowhere to put I'd like to borrow an extra 7K (which is to stick into an isa)

AndrewSmith

You have to tell the lender what the extra money is for, some lenders will impose certain limits on borrowing for different purposes. Besides, when they carry out a credit check and credit score they will be able to clearly see from that exactly what your current credit and mortgage commitments are.

Most lenders will allow capital raising for any legal purpose however you would be well advised to check what they do and do not allow before commiting to an application.

If you are using Mortgage Genie you most likely will have to contact the lender concerned yourself to obtain their particular criteria and T&C's.

It is also never wise (not that I am saying you will of course) to put down on an application capital raising for any other purpose than you are actually doing it for. Doing so is actually deemed by law as obtaining money by deception, and I have seen prosecutions persued for this.

That said, if you are using a non-advice company to apply for the mortgage I am sure you have a good handle on what is what and will have thought of these things already.

Hope this helps

Andy