Restrictions on using money from re-mortgaging?

Baxter100

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!

MortgageMamma

Hello

You can obtain the money to invest in a business but you would need to use a specific lender with which it fits policy. Some lenders will allow remortgaging for business purposes and some will not. I don't know a "high street lender" that allows this but there are a handful of smaller lenders who will.

You would be better using a broker to do this. It may be tempting to remortgage and say its for some other purpose, but it could be considered mortgage fraud if business lending is against that lenders policies, so be careful and do it the right way. Rates will still be competitive but maybe not the lowest possible.

Baxter100

Many thanks!