Additional Borrowing after payment off mortgage

Time_to_Change_2

Im after some advice as I can't find any info online without speaking to lenders.

I paid of my mortgage quite some time ago however we would like to do some building work on our home and for that we would need to borrow some money (approx £40k). Loan interest rates for this amount is quite high so we wondered if we can apply for a small mortgage?

Is this possible once the house has been paid for?

kingstreet

Yes. It's a remortgage of an unencumbered property.

Time_to_Change_2

thank you king street, would I just approach lenders as normal and states its a remortgage?
Im assuming that I'll get the same rates as those with a mortgage and switching mortgage providers?

I didn't want to approach lenders having to answer lots o Qs if it wasn't possible etc

Thank you!

kingstreet

Some lenders don't like unencumbered remortgages and won't offer the 'free legals' deal they would if there's an existing mortgage.

You should have plenty of lenders to go at and if you mention 'remortgage of an unencumbered property' in your opening phone call, you'll probably know more than the person answering the phone.

Brokers like One77 and London & Country make a big thing about not charging fees, so you might like to think about having a broker do it for you.

Thrugelmir

Time_to_Change wrote: »

Im assuming that I'll get the same rates as those with a mortgage and switching mortgage providers?

The lender has to cover their overhead costs. What you get offered will therefore factor this into account. The smaller the sum advanced the less profitable it will be for them. Set-up costs being similar irrespective of the amount applied for.