Unencumbered mortgage

Misteek

Is it possible to get a mortgage on a property like this. 

Also is the process same as a normal mortgage? Same process? Do all lenders allow it? 

What's the maximum you can borrow and what has the LTV have to be? 


I need to know for a friend. 

Thanks 

K_S

Misteek said:

Is it possible to get a mortgage on a property like this. 

Also is the process same as a normal mortgage? Same process? Do all lenders allow it? 

What's the maximum you can borrow and what has the LTV have to be? 


I need to know for a friend. 

Thanks 

@misteek If you're asking about taking out a mortgage on a currently unencumbered (mortgage-free) property, then yes it is indeed possible. With the vast majority of lenders, it would be termed a 'capital-raise remortgage' and treated the same as a remortgage where you are releasing cash.

Like any other capital-raise remortgage, the maximum that you can borrow, LTV caps, etc. will depend on your circumstances, reason/s for raising cash, lender-specific policies with respect to capital raise re-mortgages, etc.

Shocksl

K_S said:

Misteek said:

Is it possible to get a mortgage on a property like this. 

Also is the process same as a normal mortgage? Same process? Do all lenders allow it? 

What's the maximum you can borrow and what has the LTV have to be? 


I need to know for a friend. 

Thanks 

@misteek If you're asking about taking out a mortgage on a currently unencumbered (mortgage-free) property, then yes it is indeed possible. With the vast majority of lenders, it would be termed a 'capital-raise remortgage' and treated the same as a remortgage where you are releasing cash.

Like any other capital-raise remortgage, the maximum that you can borrow, LTV caps, etc. will depend on your circumstances, reason/s for raising cash, lender-specific policies with respect to capital raise re-mortgages, etc.

 A quick question for the above would it be the same as 4.5 x income etc. That will be taken into account for a mortgage like the above? 

K_S

Shocksl said:

K_S said:

Misteek said:

Is it possible to get a mortgage on a property like this. 

Also is the process same as a normal mortgage? Same process? Do all lenders allow it? 

What's the maximum you can borrow and what has the LTV have to be? 


I need to know for a friend. 

Thanks 

@misteek If you're asking about taking out a mortgage on a currently unencumbered (mortgage-free) property, then yes it is indeed possible. With the vast majority of lenders, it would be termed a 'capital-raise remortgage' and treated the same as a remortgage where you are releasing cash.

Like any other capital-raise remortgage, the maximum that you can borrow, LTV caps, etc. will depend on your circumstances, reason/s for raising cash, lender-specific policies with respect to capital raise re-mortgages, etc.

 A quick question for the above would it be the same as 4.5 x income etc. That will be taken into account for a mortgage like the above? 

@shocksl Again, it depends on the applicant's circumstances, LTV, lender etc. For Applicant A might be eligible to borrow up to 5.5x with lender 1 while Applicant B might be able to borrow no more than 4x with lender 2.

4.5x is a decent ballpark figure to use as an assumption but to get a better idea, it may be worth playing around with a couple of lender affordability calculators
https://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx
https://online.accordmortgages.com/public/mortgages/quick_enquiry.do