Speak to an Expert Advisor
or
Why Choose Us
If you’re looking to unlock some of the equity in your home, a remortgage to raise capital might be a suitable option. This process involves switching your existing mortgage to a new deal, either with your current lender or a new one, and borrowing additional funds against the value of your property. This additional borrowing is known as a capital raising mortgage, and it can be used for various purposes, from home improvements to consolidating debt.
When you remortgage to raise capital, you essentially replace your current mortgage with a new one, which could be for a larger amount. The additional amount you borrow on top of your existing mortgage is released as a lump sum, which you can use for your financial needs.
Based on a mortgage of £300,000 at 75% LTV and 25 years
Speak with Us | Interest Rate | Mortgage Type | Monthly Repayment Amount | Total Fees | Max LTV |
---|---|---|---|---|---|
3.99% | Fixed | £1,192 | £1,295 | 75% | |
4.01% | Fixed | £1,196 | £1,516 | 75% | |
4.03% | Fixed | £1,197 | £1,014 | 75% | |
4.11% | Fixed | £1,207 | £1,025 | 75% |
The amount of equity you need to have will depend on how much you wish to borrow. For example, if your property is valued at £300,000 and you have an outstanding mortgage of £150,000, you have £150,000 in equity. If you want to borrow an additional £50,000, your new mortgage would be £200,000, resulting in a 67% LTV ratio. Most lenders prefer an LTV of 80% or less, meaning you need to have a decent amount of equity to be eligible for a capital raising mortgage.
The funds from a remortgage to raise capital can be used for a variety of purposes, including:
Yes, using a capital raise mortgage to consolidate debt is a common strategy. By using the equity in your home to pay off high-interest debts, you might be able to reduce your monthly payments and save money in the long run. However, it’s crucial to be aware that this converts unsecured debt into secured debt, meaning your home is at risk if you fail to keep up with mortgage repayments.
Before proceeding with a remortgage to raise capital, it’s essential to talk to a mortgage broker Ascot Mortgages. We can help you understand the implications of increasing your mortgage, compare different mortgage deals, and find the best terms for your situation. We can also assist in calculating the impact of the new mortgage on your monthly payments and long-term financial health.
A capital raising mortgage can be a practical solution for unlocking the equity in your home, offering financial flexibility and potentially more favourable borrowing terms. However, it’s essential to consider the long-term impact on your finances and seek professional advice from Ascot Mortgages to ensure it’s the right move for you.
Get things moving, apply for a remortgage.
Free unbiased mortgage advice is just a phone call away.
Contact Us
Legal
Ascot Mortgages authorised and regulated by the Financial Conduct Authority and can be found on the FCA register (www.fca.org.uk) under reference 776062. The FCA do not regulate some forms of mortgages. The guidance and advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate it will be £599 per mortgage account. Ascot Mortgages Ltd give you the option to pay a non-refundable fee of £1299 payable with the application. If this option is taken, Ascot Mortgages Ltd will refund any procuration fee received by the lender.
Ascot Mortgages Limited is registered in England and Wales and have their registered office at 8 Webster Court, Westbrook, Warrington, WA5 8WD. The company’s registration number is 06764971.
We are a credit broker, not a lender. We work with the whole of the lending market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature any commissions model will be confirmed to you before you proceed.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT
©2024 AscotMortgages.co.uk – All Rights Reserved
Contact Us
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |