Is it possible to mortgage a house owned outright?

danwednesday

Hi,

Is it possible to get a mortgage on a house which I own outright? I'm looking to upgrade, but would prefer not to sell the current property just yet.

I've looked on various price comparison websites but none of them seem to make it clear - I'm not looking for a remortgage, I'm not looking for a buy-to-let mortgage (since I may need to still live in the current house for a year or so until the new one is done up), nor a first time buyers mortgage, or any of the ones they offer - I'm looking basically to release equity in my current property to fund development of a new one.

Thanks all for any pointers...

yelf

yes of course you can.

Mrs_Bumble

Yes you can it is often classed as a remortgage of an unencumbered property.

Middy123

We're just going through a similar thing with HSBC and they call it a Homeowner Loan. We are still living in the house though so whether that makes a difference I don't know.

Middy

Bloo_Loo

Yes its commonly called MEW...Mortgage Equity Withdrawal.

you can use it to put a deposit on your second home...bear in mind that effectively you will have a 100% mortgage on the new home secured on both properties.

PlutoinCapricorn

In what way is this different from equity release or a loan secured against ones property?

Must the money be used to buy another property?

Thrugelmir

PlutoinCapricorn wrote: »

In what way is this different from equity release or a loan secured against ones property?

Must the money be used to buy another property?

A secured loan on property is always a mortgage. Whatever title you give it for marketing purposes.

No. Though the lender may wish to ascertain the purpose of it.

Thrugelmir

danwednesday wrote: »

Hi,

Is it possible to get a mortgage on a house which I own outright? I'm looking to upgrade, but would prefer not to sell the current property just yet.

I've looked on various price comparison websites but none of them seem to make it clear - I'm not looking for a remortgage, I'm not looking for a buy-to-let mortgage (since I may need to still live in the current house for a year or so until the new one is done up), nor a first time buyers mortgage, or any of the ones they offer - I'm looking basically to release equity in my current property to fund development of a new one.

Thanks all for any pointers...

The loan will be made on normal commercial terms. The lender will advance money on your ability to repay the mortgage obtained.

There are specialist lenders that deal with new builds. Where monies are released as the build progresses. With a charge over you other house as security.