Borrowing against value of house

maisie1234

Hello,

could I ask for some advice please. We have a house worth just over £1 million. Our mortgage is paid off in 4.5 years and we have circa £140k left to pay. Repayment mortgage. However we are short of money for the school fees and effectively need £100k until our youngest son leaves senior school.

Is it best to try and get a further mortgage for say 10 years?

Particularly interested in interest ONLY because of the low repayments. I am 53 and partner is 50. We have stable jobs.

When we come to sell the house of course the first £100k belongs to the bank. We will still have lots of equity left and we both have good pension schemes (I have a final salary one)

Any suggestions? We wouldnt need the £100k in one lump sum. Our current mortage is 2.99% fixed for 4 more years

amnblog

You can do this but there are complications to get things set up the way you suggest.


You will need to engage a 'very' good mortgage broker.


(With a very good broker it would even be possible to do it without paying anything at all out of cashflow!)

maisie1234

I am open to all ideas. We dont want to take the kids out of private school (oldest is in last year anyway) and the house has lots of equity. In the next few years I gues we might have some inheirtance coming but certainly not relying on it at all.

amnblog

Then engage someone who has them Maisie.

joy20

Hi I need help with paying shortfall on our mortgage, was wondering about equity release as it would be quite difficult paying another mortgage to cover it its 14,000 it didn't sound much but we are nearing retirement its nit something we would realish any help would be grateful x

Thrugelmir

maisie1234 wrote: »

Any suggestions? We wouldnt need the £100k in one lump sum. Our current mortage is 2.99% fixed for 4 more years

Remortgage with a new lender and change the term of your existing mortgage. So that ends shortly before your state retirement age.

This should make your cashflow more manageable.