Restrictions on using money from re-mortgaging?

Hi,


I own a flat which has no mortgage on it and worth around £250,000.


I have a separate business opportunity which would need an initial investment of around £80,000.


Question - can I take out an £80,000 mortgage on my flat and then use that money to put into this separate business investment? I know people remortgage all the time in order to release equity for extensions, new kitchen etc however are there specific restrictions on what you can or can't do with the money? Or is this down to each individual lender?


Thanks!

Replies

  • MichaelDHMichaelDH Forumite
    151 Posts
    Third Anniversary 100 Posts Combo Breaker
    As far as I know you can use the money for whatever you like, as long as you have the means to pay it back. When we remortgaged last year I don't recall them even asking why we wanted extra money but I may be wrong.
    Starting Balance August 2016: £170,199.00 | Remortgaged August 2018: £212,000.00
    Current Balance (15th February 2019): £209,278.85 :eek:
    Target: Balance below £170,000.00 by August 2023 :)
  • I remortgaged recently and HSBC asked me a few questions - mainly regarding my outgoings and how they would change as a result of new investment with the remortgage money. I think it varies by lender - would recommend you are up front if asked, and if turned down try another lender.
    - Mortgage 1 started Oct 2016 [STRIKE]£120,000[/STRIKE] £99,600
    - Mortgage 2 started Feb 2019 [STRIKE]£30,000[/STRIKE] £27,800
    - Student loan started 2009 [STRIKE]£16,413[/STRIKE] £7,500
    + New house fund £40,095/£40,000
    + Emergency savings £5,170/£5,000
    + S&S ISA £600
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