Advice please - Raising capital for house improvement with offset mortgage ?

stylus360

Hi all

I have paid off my mortgage on my current property, so have £150k equity, i also own other properties outright which also have around £200k.

I want to get a mortgage for renovations to my property and want a fully flexible offset of £50k.

I also have an income of £36k plus income from rentals of around £19k.

I COULD save but want it done asap.

Looking at First Direct but unsure what i am applying for ? Is it still a remortgage ?

Or could somebody recommend a better solution ??

Thanks in advance.

glosoli

stylus360 wrote: »

Hi all

I have paid off my mortgage on my current property, so have £150k equity, i also own other properties outright which also have around £200k.

I want to get a mortgage for renovations to my property and want a fully flexible offset of £50k.

I also have an income of £36k plus income from rentals of around £19k.

I COULD save but want it done asap.

Looking at First Direct but unsure what i am applying for ? Is it still a remortgage ?

Or could somebody recommend a better solution ??

Thanks in advance.

It's called a Home Equity Release

With your income I don't see raising £50k being much of an issue, the underwriters are likely want to see evidence of the works to be carried out.

Thrugelmir

£50k of improvements to a £150k house?

Why the requirement for an offset facility?

kingstreet

IIRC FD's offset product is interest-only and the terms have recently been changed to a minimum income of £50k or £75k pa and a higher minimum loan, so check carefully.

It's a "remortgage of an unencumbered property," as a generic term, although if FD call it "Home Equity Release" they are using a generic term for a totally different product aimed at the retired, just to confuse everyone.

stylus360

I want an offset as it has flexibility, i also earn bonuses which i could massively overpay as and when i please PLUS if i ever needed extra moneys it is alaways available.

Looks like First Direct is a no go then :-(

Also noticed Chelsea BS offer one but not read a lot about them.....

So what i need to ask for is 'Equity Release' then

Thanks

kingstreet

In my opinion, you ask for equity release, you will not get what you need. Most equity release products, as I said, are designed for the elderly.

See what a google search of equity release reveals;-

https://www.google.co.uk/search?q=equity+release&rlz=1C1MDNE_enGB496GB496&oq=equity+release&aqs=chrome..69i57j0l5.4262j0&sourceid=chrome&espvd=210&es_sm=122&ie=UTF-8

dimbo61

Check out YBS as they do offset mortgages and have some good rates at the moment

stylus360

kingstreet wrote: »

In my opinion, you ask for equity release, you will not get what you need. Most equity release products, as I said, are designed for the elderly.

See what a google search of equity release reveals;-

https://www.google.co.uk/search?q=equity+release&rlz=1C1MDNE_enGB496GB496&oq=equity+release&aqs=chrome..69i57j0l5.4262j0&sourceid=chrome&espvd=210&es_sm=122&ie=UTF-8

So in theory i could just take a mortgage with Nationwide who have stated that they will lend me 85% LTV and then remortgage to a provider who offers the offset facility ?

??

kingstreet

Why would you go to Nationwide first?

Why not go straight to the lender offering the offset product you want?

stylus360

kingstreet wrote: »

Why would you go to Nationwide first?

Why not go straight to the lender offering the offset product you want?

People keep telling me i am applying for 'Equity Release' and will not get it. :mad:

kingstreet

You are not applying for equity release.

You are applying for a remortgage on an unencumbered property, as I said in post #4.