Paid off mortgage, but now need money

uncleslinky

Hi - a year or so ago my partner and I were in a position to pay off our mortgage early. However we unfortunately find ourself in need of money. My question is, am I able to take out a mortgage against a property that is already ours or would I be looking at a regular type of loan/bank loan?

I've come across terms such as refinancing your house and re-mortgaging for better deals but I wasn't sure if this was a possibility once a property had been paid off.

Thanks

Contemptuous

It's a remortgage of an unencumbered property.

ViolaLass

Of course you can take out a new mortgage (subject to salary etc).

Thrugelmir

Yes it is possible to release money. Whether remortgaging the property is the right choice is another matter. Much depends on your personal circumstances and the amount involved along with the purpose.

MerrilyA

You can get a mortgage on your mortgage-free property.

However, I think it may be better to consider other options you could either sell and get money that way, or get a loan against the value of your house with knowledge of how you will pay it back.

It also depends on what you need the money for. Is it something that s essential that you need or is it something that can wait for later or perhaps you don't need it at all?

You just don't want to put yourself in a position that could add further financial discomfort in the future.

Speaking to a mortgage advisor may be worthwhile.

ViolaLass

MerrilyA wrote: »

You can get a mortgage on your mortgage-free property.

However, I think it may be better to consider other options you could either sell and get money that way, or get a loan against the value of your house with knowledge of how you will pay it back.

It also depends on what you need the money for. Is it something that s essential that you need or is it something that can wait for later or perhaps you don't need it at all?

You just don't want to put yourself in a position that could add further financial discomfort in the future.

Speaking to a mortgage advisor may be worthwhile.

How is that bit of your suggestion different to a mortgage?

Bravestar

ViolaLass wrote: »

How is that bit of your suggestion different to a mortgage?

Usually it costs more

A mortgage is only a special type of secured loan.


There's an old, non-updated MSE article on secured loans here (see warning)
http://www.moneysavingexpert.com/loans/secured-loans

Secured loans are normally second charges applied against a property that already has a mortgage (and there can be advantages of doing this depending on circumstances - see https://www.moneyadviceservice.org.uk/en/articles/second-charge-or-second-mortgages) but they can also be applied to properties that are currently unencumbered.

As they would cost more than a mortgage, I'm not sure what the advantages of taking this option would be where the property is unencumbered, but a professional adviser would discuss the options and explain pros & cons of each