Equity release

Jack_Johnson_the_acorn

Scenario:

House owned outright, value £130k conservative estimate.

As there is no mortgage open what is the cheapest way to release equity so it can be invested elsewhere?

£40k needed

Thanks in advance.

dimbo61

The first thing any Lender will ask is Why do you want to borrow £40,000 ?
If you have the income and are not already retired and living on a low income it should be possible.
Knowing nothing about you or credit history, age,income, kids, pensions,savings etc who can say if you will get a mortgage or loan

Jack_Johnson_the_acorn

dimbo61 wrote: »

The first thing any Lender will ask is Why do you want to borrow £40,000 ?
If you have the income and are not already retired and living on a low income it should be possible.
Knowing nothing about you or credit history, age,income, kids, pensions,savings etc who can say if you will get a mortgage or loan

Not for me.
It's to invest, none of the criteria would be an issue. I'm just unsure how they go about releasing the funds via a mortgage.Obviously the rates are preferential on 20%LTV mortgage when compared to a loan.

Funny_old_game

Can you get £40k personal loans? I genuinely don't know (thought 25k was max)?

Thrugelmir

Jack_Johnson_the_acorn wrote: »

It's to invest, none of the criteria would be an issue.

To lenders it might be. As the purpose of mortgage advances is to purchase property. There's other forms of finance available for other purposes. All of which can be secured against an asset such as a property.

Jack_Johnson_the_acorn

Thrugelmir wrote: »

To lenders it might be. As the purpose of mortgage advances is to purchase property. There's other forms of finance available for other purposes. All of which can be secured against an asset such as a property.

Yes, they're considering another property or other investments... I probably haven't made it clear what I'm asking.

I thought it would be possible to re-mortgage / New mortgage on a property owned outright rather than applying for a new mortgage on another property which would mean a higher LTV???

They are also considering investing in another venture... nothing to do with property.

Jack_Johnson_the_acorn

I think what I was considering they do isn't actually possible.

They do have £40k in funds so they are probably best just using that as a deposit from what I can gather.

Equity release mortgages are expensive so that's a no go, they would still have 70% LTV on the investment property so the rates wouldn't be much different... Just trying to maximise ROI.