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Remortgaging my paid up house

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Hello All, not sure if this is a very obvious question but here goes...

I currently own my house outright as I borrowed some money from my family to pay off the mortgage before the fixed rate came to an end. I need to pay them back within the next year or two and so one option would be to take out a fresh mortgage, I would be looking for around £150,000 on a house worth £800,000. Would this be straightforward or would any bank only want to lend if the monies were being used to pay back another lender? Is it as simple as once the mortgage is completed, they ask me what account I want the money paid into? Many thanks
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  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 14 May at 5:29PM
     Is it as simple as once the mortgage is completed, they ask me what account I want the money paid into? 
    Any particular reason for asking this question.  Remortgaging in principle is a straighforward process.  

  • carpenter365
    carpenter365 Posts: 4 Newbie
    First Post
    I think my concern is that the lender would not want to pay the money directly to me as they cannot control how it is spent ie what is to stop me spending the money on a Bentley!!
  • Ayr_Rage
    Ayr_Rage Posts: 2,740 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper
    In 1999 I mortgaged my owned house and bought a new Porsche 911.

    It was cheaper than any loan and I didn't want to sell any shares.
  • born_again
    born_again Posts: 20,449 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    I think my concern is that the lender would not want to pay the money directly to me as they cannot control how it is spent ie what is to stop me spending the money on a Bentley!!
    They are not worried what you spend it on. If you don't pay it back, they get the house....
    Life in the slow lane
  • Flugelhorn
    Flugelhorn Posts: 7,324 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I had am offset mortgage and asked them about the "reserve" - they said "you can buy a lamborghini if you like, none of our business"
  • carpenter365
    carpenter365 Posts: 4 Newbie
    First Post
    thanks everyone!
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    I think my concern is that the lender would not want to pay the money directly to me as they cannot control how it is spent ie what is to stop me spending the money on a Bentley!!
    If it goes to your family they could simply hand it back though...........
  • gwynlas
    gwynlas Posts: 2,250 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    As ever the lender is only concerned about affordability so it would depend on income and age how long you could have a mortgage for.
  • silvercar
    silvercar Posts: 49,562 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    gwynlas said:
    As ever the lender is only concerned about affordability so it would depend on income and age how long you could have a mortgage for.
    An equity release mortgage would only worry about property value, and a LTV of only 25% would be fine.
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  • carpenter365
    carpenter365 Posts: 4 Newbie
    First Post
    silvercar said:
    gwynlas said:
    As ever the lender is only concerned about affordability so it would depend on income and age how long you could have a mortgage for.
    An equity release mortgage would only worry about property value, and a LTV of only 25% would be fine.
    Thank you, so with this type of scenario, I am restricted to an equity release mortgage as I note that the interest rates are considerably higher than std remortgage rates?

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