Capital Raising - The cash could be for several reasons like home improvements, a holiday or maybe a new car. It might also be a necessity, as getting divorced is a fact of modern life and many partners would prefer to stay in their current home if they could raise money to "buy out" their ex partner.
Debt Consolidating - A debt consolidation capital raising mortgage is typically where a person will take out a mortgage that is large enough to pay off an existing mortgage whilst also covering all existing debts. If your main challenge is making ends meet every month, and it seems like your debt wont go away, its probably because your payments are just paying the interest. It can take decades and longer to repay credit cards from just the minimum payment. Consolidating the debt can not only reduce your outgoings, it can help give you structure to actually pay back what you owe, over a comfortable and affordable timeframe.
For many, the main benefit is that it can decrease the interest rate you pay radically, lowering your overall monthly payment, and helping you pay your debts off quicker if you chose. It can also simplify the financial responsibility into one monthly commitment so you don’t have to worry about keeping track of numerous different payments on cards and loans going out on different days of the month, and trying to orchestrate things around payday.Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Capital Raising for a Deposit – Purchasing a second property or a buy to let property is becoming more and more popular; saving for the deposit is quite a difficult process while already paying for a current mortgage. If you want to move home but cannot sell your current home consider raising the deposit on the current home and renting it out on a Let to Buy scheme or you might be considering a buy to let property to make some extra income. By remortgaging it might make this process considerably easier. Call us to see if it could work for you.
Some buy to let and let to buy mortgages are not regulated by the Financial Conduct Authority.If you have an equity loan when you reach the end of the first five years, you'll have to start paying interest on the equity loan. This will be charged at 1.75% in the sixth year. On a £40,000 Help to Buy loan this equates to £700 a year or £58.33 a month.
From the seventh year, this rate will rise annually by the Retail Price Index, plus another 1%.
Because you will have an additional monthly repayment, this will also be factored in by your mortgage lender when they assess your application to remortgage and it could potentially reduce the amount you can afford to repay to them each month. You may also find it harder to remortgage than you might think.
We are mortgage advisers, which mean we have access to a large, comprehensive range of mortgage lenders throughout the intermediary market. We can recommend lenders not on the high street, perhaps even some you have never heard of.
We specialise in providing remortgage advice to clients both new and old. We will begin by understanding your objectives, consider all the options open to you and then recommend the right course of action.
Mortgage deals may not be available and lending is subject to individual circumstances and status.
You may have to pay an early repayment charge to your existing lender if you remortgage.