Remortgaging to release equity

ali_white8

Hi

I was hoping for some advice please! We purchased our property about 7 years ago and as of last year it was valued at £400k with a £176k mortgage on it. Last year we did a big extension costing about £150k which we borrowed from family with the intention of extending our mortgage to release the funds (the full amount has to go back unfortunately!). We think the property is now worth £615k (ish - fingers crossed folks) and we want to remortgage for £335k to return to money and finish off the last few bits. One mortgage company (HSBC) has said that they will only lend £50k to repay family loans even if you have sufficient equity to borrow more? Is this an industry norm and if so how do we access what is essentially our money / equity to be able to cover off things we have agreed to pay? We thought would be quite simple - any suggestions please?

MEM62

Your issue is the purpose for the loan. You are asking to borrow £159,000 to pay off debts. If you were asking for £159K to make improvements to the property that would be viewed differently. The fact that the £150K you borrowed previously was invested in the house is irrelevant.

muhandis

Have you consulted a broker?

My recommendation would be to not go down the trial-and-error route lender by lender. Talk to a broker, explain the situation and they will suggest an appropriate lender+product if any.

ali_white8 wrote: »

any suggestions please?