Releasing Money for Home Improvements

anotheruser

Can someone tell me how this works?

I'm aware many people get a bit of money by releasing it from their equity to help with home improvements so wondered how this works with terms of repayment.

Feel free to use a basic example.

MichaelMe

I've actually just completed on an equity release for home improvements about a week ago. It is essentially a further advance on your existing mortgage from your existing lender. They will go through an affordability check (i.e payslips and bank statements to check you can afford the new repayments). You will need to submit an application and select a product like you would have done when you took out the mortgage. But it is much quicker and I managed to get mine done in about 4 weeks.
They will do a hard credit search as part of the process. If it is approved then your mortgage repayments will obviously go up with any new amount taken, paid back monthly as one direct debit. Oh and they will question you about the type of improvement you are looking to do and cost and ask if you have had quotes etc. But they will not need any proof of quotes. Hope that helps.