How to release equity on mortgage when have lots of it :-S small mortgage and after options

welshlad46

So il try and keep it as short as possible.. house purchased for £102,000 now worth potentially over £200,000 based on houses in area (ours probably worth more).. have current rate locked in until January 2027 at 1.78% (I know very very lucky) so I have been paying £200 a month in to savings to overpay the mortgage and I am hoping to max out that 10% overpayment limit come 2027 remortgage time.. but my question is this.. with 100k equity pot sat there doing nothing and we have no intentions on moving.. but we would love to purchase a caravan/campervan.. is there anyway this equity could be used for this? We dont need the money for anything on the house really as we saved to have the bathroom done two years ago and we do try and save as much money as possibe but would love to buy a caranavan/camper for us to enjoy as a family as my daughter loves a caravan 🤣Obviously i understand and appreciate that our mortgage rate is great to have and we wouldn’t want to change that until it is due but any ideas on this would be appreciated 

welshlad46

Also only looking to take our a max £30,000

Flugelhorn

presume the only way would be to remortgage but then you would lose your low rate. 

Hoenir

Which mortgage lender are you with?

silvercar

The money you are saving for an overpayment could be used to buy the caravan.

welshlad46

The mortgage is with Virgin.. aint got a massive amount of years left i think 17-18.. 

welshlad46

Years .. sorry it sent before i could adjust it🤦‍♂️

zagfles

You're saving for an overpayment yet want to borrow an extra £30k for a caravan? Make your mind up, do you want to pay down the mortgage or use your equity to borrow more? 

Flugelhorn

zagfles said:

You're saving for an overpayment yet want to borrow an extra £30k for a caravan? Make your mind up, do you want to pay down the mortgage or use your equity to borrow more? 

true if you borrow 30K more then it will take longer to pay it back or have to pay much more each month - save up for the caravan while the rates are low (if that is what you want)

turnemc

with nationwide my mortgage allowed me to ‘borrow back’ my overpayments keeping the same interest rate as my deal. I did the same for buying a caravan and then hammered overpayments to the mortgage to get the money I’d taken for the caravan paid back.

MWT

welshlad46 said:

.. with 100k equity pot sat there doing nothing and we have no intentions on moving..

It isn't doing nothing, you are living in it...

It would make more sense to combine your savings with an unsecured loan to get the caravan if you want it soon.