We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Can you mortgage your home when you own it outright?

dannodav
dannodav Posts: 2 Newbie
Part of the Furniture Combo Breaker
in Mortgages & endowments
I don't have a mortgage, I own the lease on my flat outright. I need to raise funds to do some neccessary repairs and upgrades (new roof, gable, windows and heating system). Is it possible to mortgage part of the property to raise the funds or will I need to get a loan?

Any advice would be much appreciated.

Comments

  • silvercar
    silvercar Posts: 50,971 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    shouldn't be a problem. The amount of the loan will be based on your credit rating and your ability to repay the lona (affordablity or salary).

    The downside may be that for a relatively small loan the arrangement fees etc may seem high.

    look at 0% credit card etc, if you are able to repay the loan quickly they may work out cheaper.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    I don't see why not. You own the property and it is this that will be used as security for the mortgage.

    :)

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • asandwhen
    asandwhen Posts: 1,407 Forumite
    depends how long is left on the lease - mortgage companys wont touch you unless there is about 50yrs to run on it.
  • Coupon-mad
    Coupon-mad Posts: 162,381 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    dannodav wrote:
    I don't have a mortgage, I own the lease on my flat outright. I need to raise funds to do some neccessary repairs and upgrades (new roof, gable, windows and heating system). Is it possible to mortgage part of the property to raise the funds or will I need to get a loan?

    Any advice would be much appreciated.



    Yes you can (subject to the lease and property valuation being acceptable to the lender). I used to be a Mortgage manager for a Bank before kiddies came along!

    A mortage is just a secured loan anyway, same thing. If you contact a few lenders, Banks, Building Societies you will find some lenders will call it a mortgage and some a secured loan.

    Compare interest rates, penalty charges (for early redemption) and likely costs. Lenders should be able to give you that info up front. You should be able to choose your repayment term (probably 5 year term or more but you could pay it off quicker if that suits you better and the lender's terms allow for that).

    HTH
    PRIVATE 'PCN'? DON'T PAY BUT DON'T IGNORE IT (except N.Ireland).
    CLICK at the top or bottom of any page where it says:
     Home»Motoring»Parking Tickets Fines & Parking - read the NEWBIES THREAD
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Some will call it a re-mortgage of an unencumbered property and have free legal fees and valuations on some schemes

    HTH
    I am a Mortgage Adviser
    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.
  • Raggie
    Raggie Posts: 618 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    question..

    on a leashold property isn't it the reponibilty of the freeholder to do those types of repairs? (excluding the heating maybe)
    The only place where success comes before work is the dictionary…
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.6K Banking & Borrowing
  • 254.5K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.5K Work, Benefits & Business
  • 604.4K Mortgages, Homes & Bills
  • 178.6K Life & Family
  • 262K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture