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Remortgaging and releasing equity
zoothornrollo_2
Posts: 321 Forumite
Just a quick question re. the mechanics of remortgaging: if we are switching lender and we want to take £15k out of our equity, how does that actually work?
How do we actually get hold of the £15k? Do we just tell our new lender that our current mortgage is 50% of the property's value but we would like to borrow 55% from them?
Our circumstance is that we have used credit card borrowing to do work on the flat, which we want to pay back.
Most lenders I believe don't like extending borrowing to consolidate debts, so we would have to say it was for home renovations (which is sort of true anyway).
How do we actually get hold of the £15k? Do we just tell our new lender that our current mortgage is 50% of the property's value but we would like to borrow 55% from them?
Our circumstance is that we have used credit card borrowing to do work on the flat, which we want to pay back.
Most lenders I believe don't like extending borrowing to consolidate debts, so we would have to say it was for home renovations (which is sort of true anyway).
0
Comments
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You apply for the amount that you wish to borrow.
Lenders will factor existing debts into any decision.0
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