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Remortgaging to release equity

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Hi, my current HSBC fixed term mortgage is coming to an end soon and I’m looking to release £10K to help with upcoming wedding. My LTV is around 55% at the moment. I also took out a £25,000 HSBC home owner loan last year to help with some big home renovations which I’m hoping to have happen this year (currently paying £178 a month for that) on top of my HSBC mortgage (£460 per month). I earn £34,000 a year.

If I choose to remortgage to another provider, am I likely to face any issues or questions why I want to release £10K when I already have £25K loan in my bank account? Obviously my LTV won’t be as good if I did release some equity but surely I’m still in a good position, right? I just want to be able to use the money I work hard for, especially given the financial climate at the moment.

Any help or advice would be appreciated.

Thanks.

Comments

  • rob7475
    rob7475 Posts: 948 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Have you asked HSBC if they will lend you another £10k or is there a particular reason you want to leave them?

    They should be able to give you a good idea if they will lend without running credit searches on you as you are an existing customer. If not, speak to a good broker.

    Have you thought about an unsecured loan though? Many banks are now offering unsecured loans with up to 10 years to repay on larger amounts with interest rates comparable to secured loans.

    I was recently offered a £10k loan from natwest with 10 year repayment at around 5% apr. 
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