Can I invest the equity from a remortgage in a bank/BS ?

dhan

I am thinking of remortgaging my house but I dont want to use the equity from the mortgage right now.I want to have the fund readily available for things like buying a property at an auction or even some kind of business.I am not sure about the bank/building society criteria.
Will the bank be happy to make the fund available on a 5 or 10 % remortgage of my current property on that basis ??

Any idea from anybody who knows ..............
Thanks

silvercar

why not have an offset mortgage, that way the money will be available but you won't pay interest on it while it is sitting in the offset savings account.

dhan

Apparently you cannot do that.... britannia says you are not allowed to reinvest equity gained from remortgaging and Halifax would nor necessarily allow automatic withdrawal from the offset Mortgage!! Ille keep trying different options ........ thanks for your advice anyway!!

MarkyMarkD

I don't understand the objection from any lender. The whole point of offset is that you can offset whatever amount you want.

As well as offset, consider other flexible mortgages (with full flexible features, i.e. which allow limit-free overpayment and drawdown of the overpayments).

It's daft to borrow and then stick the money in a savings account which is taxable.

dhan

Tell me about it!!
When you want to withdraw the cash apparently your circumtances might have changed and hence you are not guaranteed to have access to that money from the flexible mortgage.You have to apply to withdraw money from the account which might not get accepted!!
Now I have found out that most lenders wont allow remortgaging of your home to finance a business!! Talk about very being stressed!!