Further advance Vs Equity release

coops82_2

If you have finished the fixed period of your mortgage and want to release some equity are you effectively signing up to a new mortgage by releasing some cash?. Is this called a 'further advance 'or equity release'


Has anyone had any experiences doing this?

kingstreet

It depends on the lender.

As you've identified, some issue a further advance, normally at standard variable rate, others issue additional borrowing, based on a different rate. Others still want you to renegotiate a rate for the whole amount of the borrowing - existing and additional.

coops82_2

kingstreet wrote: »

It depends on the lender.

As you've identified, some issue a further advance, normally at standard variable rate, others issue additional borrowing, based on a different rate. Others still want you to renegotiate a rate for the whole amount of the borrowing - existing and additional.

So effectively your previously excellent deal has ended? Are the new rates negotiable?

Thrugelmir

coops82 wrote: »

Are the new rates negotiable?

Rates are what the lender has on offer. There's no negotiation.

You will be asked purpose of equity release. Do you require a sizable sum?