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Releasing equity at remortgage
Options
oligopoly
Posts: 395 Forumite
Hi,
Our mortgage is up for renewal in September and we'd sorely like a new kitchen. Rather than borrow on a 0% interest card over 3 years (which was my first thought) I had the idea of releasing some equity in September. House value = est. £380k | remaining mortgage = £236k | Equity = £144k. The house will have risen in value of approx 25k in the last 18 months.
Would I be able to retain £10k of this in September? Is this a done thing? Our remaining mortgage term is 30 years so any additional cost/interest on the repayments doesn't hugely concern me.
Thanks for reading.
Our mortgage is up for renewal in September and we'd sorely like a new kitchen. Rather than borrow on a 0% interest card over 3 years (which was my first thought) I had the idea of releasing some equity in September. House value = est. £380k | remaining mortgage = £236k | Equity = £144k. The house will have risen in value of approx 25k in the last 18 months.
Would I be able to retain £10k of this in September? Is this a done thing? Our remaining mortgage term is 30 years so any additional cost/interest on the repayments doesn't hugely concern me.
Thanks for reading.
Increasingly money-conscious
:cool:
:cool:
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Comments
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Why pay interest by adding it to the mortgage if borrowing it at 0% is an option for you?0
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Pickle_Lily wrote: »Why pay interest by adding it to the mortgage if borrowing it at 0% is an option for you?
Because borrowing on credit card would involve an aggressive repayment - £200-300 per month. Spreading the cost over 30 years would have only a slight impact on our monthly mortgage payments. I am aware that interest will be charged doing it this way...Increasingly money-conscious
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Yes you could, but this would dictate a full application to either a new lender or your current lender.
Would make sense to contract a broker to review the market to see what is best for you.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice0 -
Yes you could, but this would dictate a full application to either a new lender or your current lender.
Would make sense to contract a broker to review the market to see what is best for you.
Thanks. I have a mortgage adviser who I'll contact in the summer - just thinking ahead is all. I suppose I'm trying to establish whether what i'm suggesting is a normal thing that people do with careful planning or whether it's more of a risky venture.Increasingly money-conscious
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Nope relatively normal and commonplace.
Now releasing equity to put on black down the local casino that's a risky venture....and one that lenders would frown uponI am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice0
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