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

welshlad46

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

No19v87

welshlad46 said:

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

It doesn’t make much sense though to overpay your mortgage whilst also wanting to borrow more on it. Anything borrowed on it will be a substantially higher rate and mean anything you save through overpayments is non existent.

Just don’t make overpayments, keep your low rate and save to buy the caravan.

comeandgo

Overpaying your mortgage while on such a low rate is not very money wise.  

welshlad46

comeandgo said:

Overpaying your mortgage while on such a low rate is not very money wise.  

Im not directly overpaying the mortgage im paying £200 a month in to a 4.3% savings account to then pay off the lump at the end of the time

welshlad46

No19v87 said:

welshlad46 said:

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

It doesn’t make much sense though to overpay your mortgage whilst also wanting to borrow more on it. Anything borrowed on it will be a substantially higher rate and mean anything you save through overpayments is non existent.

Just don’t make overpayments, keep your low rate and save to buy the caravan.

This is what i dont quite understand to be honest as in my eyes that 100k is sat there and only time would get any benifits would be if I moved house which we are not planning on.. so I was hoping to pull some of that to purchase the caravan/camper

zagfles

welshlad46 said:

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

What do you mean "sat there doing nothing"? If it's "doing nothing" then sell the house! But clearly it is doing something, providing you with a roof over your head!

If you want to use that £100k equity, you either need to sell the house and buy a cheaper one, or rent, or increase your borrowing using the equity as collateral. How else do you think you can use it?

But you're saving to pay down your mortgage! Instead save for the caravan, and maybe increase your mortgage if your savings aren't enough. But best not do anything to sacrifice your good rate. 

There is a lot of deluded thinking when it comes to house prices, probably from stories in gutter rags like the Express wittering on about houses "earning" more money than most people's salaries. As if houses going up in price gives people extra money to spend. If something you both own and need goes up in price you've "earned" precisely zero. You just have a bigger "credit limit" on your mortgage. 

welshlad46

zagfles said:

welshlad46 said:

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

What do you mean "sat there doing nothing"? If it's "doing nothing" then sell the house! But clearly it is doing something, providing you with a roof over your head!

If you want to use that £100k equity, you either need to sell the house and buy a cheaper one, or rent, or increase your borrowing using the equity as collateral. How else do you think you can use it?

But you're saving to pay down your mortgage! Instead save for the caravan, and maybe increase your mortgage if your savings aren't enough. But best not do anything to sacrifice your good rate. 

There is a lot of deluded thinking when it comes to house prices, probably from stories in gutter rags like the Express wittering on about houses "earning" more money than most people's salaries. As if houses going up in price gives people extra money to spend. If something you both own and need goes up in price you've "earned" precisely zero. You just have a bigger "credit limit" on your mortgage. 

And this goes back to why i asked the question.. unfortunately i dont understand it all and im learning about mortgage stuff every day.. i dont want to move house i was just thinking that with that money made could it be used to purchase a caravan / camper as i dont want it all only about 20-30k and the house price will never go back down to that price… 1 a few doors up from me has just sold for £195,000 and hasnt been touched since the 70s-80s so mine is easy worth £205,000 and it was just me asking the question if there was a way possible to use that equity as i do not know..

zagfles

welshlad46 said:

zagfles said:

welshlad46 said:

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

What do you mean "sat there doing nothing"? If it's "doing nothing" then sell the house! But clearly it is doing something, providing you with a roof over your head!

If you want to use that £100k equity, you either need to sell the house and buy a cheaper one, or rent, or increase your borrowing using the equity as collateral. How else do you think you can use it?

But you're saving to pay down your mortgage! Instead save for the caravan, and maybe increase your mortgage if your savings aren't enough. But best not do anything to sacrifice your good rate. 

There is a lot of deluded thinking when it comes to house prices, probably from stories in gutter rags like the Express wittering on about houses "earning" more money than most people's salaries. As if houses going up in price gives people extra money to spend. If something you both own and need goes up in price you've "earned" precisely zero. You just have a bigger "credit limit" on your mortgage. 

And this goes back to why i asked the question.. unfortunately i dont understand it all and im learning about mortgage stuff every day.. i dont want to move house i was just thinking that with that money made could it be used to purchase a caravan / camper as i dont want it all only about 20-30k and the house price will never go back down to that price… 1 a few doors up from me has just sold for £195,000 and hasnt been touched since the 70s-80s so mine is easy worth £205,000 and it was just me asking the question if there was a way possible to use that equity as i do not know..

What "money made"? You have made precisely nothing just because your house has increased in price, unless you sell it. That's when you might release money. You can't have your cake and eat it. 

So if you want £20-30k from your house equity, you either need to sell your house and buy a cheaper one, or borrow more against it. Did you really think you can just spend equity in your house without selling it or borrowing more against it? 

welshlad46

zagfles said:

welshlad46 said:

zagfles said:

welshlad46 said:

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

What do you mean "sat there doing nothing"? If it's "doing nothing" then sell the house! But clearly it is doing something, providing you with a roof over your head!

If you want to use that £100k equity, you either need to sell the house and buy a cheaper one, or rent, or increase your borrowing using the equity as collateral. How else do you think you can use it?

But you're saving to pay down your mortgage! Instead save for the caravan, and maybe increase your mortgage if your savings aren't enough. But best not do anything to sacrifice your good rate. 

There is a lot of deluded thinking when it comes to house prices, probably from stories in gutter rags like the Express wittering on about houses "earning" more money than most people's salaries. As if houses going up in price gives people extra money to spend. If something you both own and need goes up in price you've "earned" precisely zero. You just have a bigger "credit limit" on your mortgage. 

And this goes back to why i asked the question.. unfortunately i dont understand it all and im learning about mortgage stuff every day.. i dont want to move house i was just thinking that with that money made could it be used to purchase a caravan / camper as i dont want it all only about 20-30k and the house price will never go back down to that price… 1 a few doors up from me has just sold for £195,000 and hasnt been touched since the 70s-80s so mine is easy worth £205,000 and it was just me asking the question if there was a way possible to use that equity as i do not know..

What "money made"? You have made precisely nothing just because your house has increased in price, unless you sell it. That's when you might release money. You can't have your cake and eat it. 

So if you want £20-30k from your house equity, you either need to sell your house and buy a cheaper one, or borrow more against it. Did you really think you can just spend equity in your house without selling it or borrowing more against it? 

Jeeze i thought the idea of putting stuff on forums was to learn.. not to get shut down for asking a question.. forget i even bothered seesh!!

zagfles

welshlad46 said:

zagfles said:

welshlad46 said:

zagfles said:

welshlad46 said:

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? 

Well it isnt a case if make up my mind really is it.. im already overpaying the mortgage as it is a no brainer on the rate im on.. i was just wondering if there was a way with 100k sat there doing nothing and with us not looking to move house etc if there was a way i could use some of that money thats all.. new to it all and was not sure if there was options for this sorry

What do you mean "sat there doing nothing"? If it's "doing nothing" then sell the house! But clearly it is doing something, providing you with a roof over your head!

If you want to use that £100k equity, you either need to sell the house and buy a cheaper one, or rent, or increase your borrowing using the equity as collateral. How else do you think you can use it?

But you're saving to pay down your mortgage! Instead save for the caravan, and maybe increase your mortgage if your savings aren't enough. But best not do anything to sacrifice your good rate. 

There is a lot of deluded thinking when it comes to house prices, probably from stories in gutter rags like the Express wittering on about houses "earning" more money than most people's salaries. As if houses going up in price gives people extra money to spend. If something you both own and need goes up in price you've "earned" precisely zero. You just have a bigger "credit limit" on your mortgage. 

And this goes back to why i asked the question.. unfortunately i dont understand it all and im learning about mortgage stuff every day.. i dont want to move house i was just thinking that with that money made could it be used to purchase a caravan / camper as i dont want it all only about 20-30k and the house price will never go back down to that price… 1 a few doors up from me has just sold for £195,000 and hasnt been touched since the 70s-80s so mine is easy worth £205,000 and it was just me asking the question if there was a way possible to use that equity as i do not know..

What "money made"? You have made precisely nothing just because your house has increased in price, unless you sell it. That's when you might release money. You can't have your cake and eat it. 

So if you want £20-30k from your house equity, you either need to sell your house and buy a cheaper one, or borrow more against it. Did you really think you can just spend equity in your house without selling it or borrowing more against it? 

Jeeze i thought the idea of putting stuff on forums was to learn.. not to get shut down for asking a question.. forget i even bothered seesh!!

I'm not shutting you down, I'm trying to answer your question and get you to think about it so you can learn. Apologies if I've come across like that, not my intention.