Releasing funds from home mortgage.

SpiderMonkey

Please can you advise if I can raise some equity(?) from my home. I want some money to buy another house.

I bought my first home 2 years ago which I live in. The house price was 180k, I put down a deposit of 27k and I have since made repayments totalling 20k. Would I be able to release some money?

I have tried researching but I am just finding equity release plans for retiring persons. Your advice would be grateful.

Many thanks.

Paul_the_Painter

Unlikely, as your loan amount would not have dropped much by now. You don't need to look at equity release products by the way, just (re)mortgage products.

MarkBargain

So you still owe £133K of a £180K house, yet you want to buy a second?!

Caz3121

SpiderMonkey wrote: »

P I have since made repayments totalling 20k.

Assuming this was the regular mortgage payment you may find that a large % of this, as it is the start of the mortgage, is interest payments

what is your house worth now?
how much is left to pay on your mortgage?
how much are you looking for borrow?

kingstreet

Some lenders will allow you to "re-draw" any overpayments you've made, but not the capital repayments made as part of your contractual obligation.

Therefore it may be possible to re-draw some of that £20k if it was voluntarily paid.

Ask your lender.

Typically, if you didn't overpay and you simply want additional borrowing, you'll be able to borrow upto 80% of the value of the property.

If you are not in a "deal" with your current lender, you may find it easier and more cost effective to remortgage to a new lender, get free transfer costs and a better rate than the combination you will end up on with your current lender.

SpiderMonkey

Thanks to all who answered, I spoke with my lender and it is not possible sadly. Thanks again.