Release of Collateral

Mojisola

sircodders wrote: »

Myself and my wife are both in our mid 40's and we own our £550,000 property outright.

Despite being asset rich we are cash poor. Apart from getting a mortgage is there any way of releasing cash from the property?

sircodders wrote: »

We've been mortgage free for 15 years now so unless desperate we don't really want to go down that route.

What's the difference between owing a mortgage company some money and someone else owning part of your house that makes a mortgage such a terrible thing to have?

Sea_Shell

If you've been mortgage free for 15 years,. Why no savings pot?? Just a thought.

AnotherJoe

Sea_Shell wrote: »

If you've been mortgage free for 15 years,. Why no savings pot?? Just a thought.

..... hence my point about kicking the can down the road.

kidmugsy

sircodders wrote: »

Myself and my wife are both in our mid 40's and we own our £550,000 property outright.

Despite being asset rich we are cash poor. Apart from getting a mortgage is there any way of releasing cash from the property?

I'll rephrase that. Apart from doing the obvious bleedin' thing is there any way of releasing cash from the property?


At the moment borrowing is so cheap that you can probably find niche savings accounts that pay a higher interest rate than the mortgage charges.

A mortgage solves the problem for some years. Long-term you need either to cut your outgoings or increase your incomes. What are your plans on that front?

ProDave

Sea_Shell wrote: »

If you've been mortgage free for 15 years,. Why no savings pot?? Just a thought.

I was going to ask that.

Presumably you had a mortgage that you paid off 15 years ago?

So when that was gone, where did all the (former) mortgage payments go?

I can only assume either your wages went down, or your spending went up (or a bit of both)

The only "solution" to this is earn more, or spend less.

A new mortgage now would only mean spending more each month than you earn, and if you are paying that from the pot sitting there from the mortgage, that will run into trouble in a few years.

How about relocate to a cheaper area and release money that way (keeping the same size house)

thenewcomer

your house is your liability. downsize it.

AnotherJoe

thenewcomer wrote: »

your house is your liability. downsize it.

On what basis or evidence do you say that ?

LHW99

Do you actually need immediate access to a stash of cash? If not, work on building one up as said above.
If you do, is that because you have immediate bills to pay? and if that, have a look at the Debt-free wannabe board.