Taking money out of your property
Discussion
Hi All,
Sorry for what might seem to an obvious question to some but I have no prior experience at all.
If I wanted to withdraw some equity from my home, lets say 10% of what I have accrued, I presume this is impossible when committed to a fixed rate deal and that I would need to wait until my deal comes to an end and re-mortgage at the time?
Unsure if they welcome the opportunity to recalc for the new balance (with a fee) or whether its a flat no?
Sorry for what might seem to an obvious question to some but I have no prior experience at all.
If I wanted to withdraw some equity from my home, lets say 10% of what I have accrued, I presume this is impossible when committed to a fixed rate deal and that I would need to wait until my deal comes to an end and re-mortgage at the time?
Unsure if they welcome the opportunity to recalc for the new balance (with a fee) or whether its a flat no?
Jag_NE said:
Hi All,
Sorry for what might seem to an obvious question to some but I have no prior experience at all.
If I wanted to withdraw some equity from my home, lets say 10% of what I have accrued, I presume this is impossible when committed to a fixed rate deal and that I would need to wait until my deal comes to an end and re-mortgage at the time?
Unsure if they welcome the opportunity to recalc for the new balance (with a fee) or whether its a flat no?
Just ask the lender for a further advance....you do NOT need a 2nd charge additional mortgage.Sorry for what might seem to an obvious question to some but I have no prior experience at all.
If I wanted to withdraw some equity from my home, lets say 10% of what I have accrued, I presume this is impossible when committed to a fixed rate deal and that I would need to wait until my deal comes to an end and re-mortgage at the time?
Unsure if they welcome the opportunity to recalc for the new balance (with a fee) or whether its a flat no?
Jag_NE said:
drainbrain said:
Secured (2nd charge) loan is what you could do.
Thanks. Does that essentially result in two "mortgages"?You should certainly try what Sarnie suggested - ask for a further advance.
But the 2nd charge option is always there if the lender starts getting weird about a further advance.
drainbrain said:
But the 2nd charge option is always there if the lender starts getting weird about a further advance.
Although (999 times out of 1,000) you can't make a second charge without formal consent of the first lender, which may be difficult/impossible to obtain.Surprised you didn't mention that...
terrydacktal said:
DSLiverpool said:
What would you do if you had no mortgage?
Make a point of mentioning it where it's not relevant? 
Despite the soft blandishments of the equity release industry, the truth is that it isn't really possible to "withdraw" equity from your home. The only true way to access the equity is to sell your home at market value and buy a smaller one.
You may be able to borrow some (more) money, using your home as security. The money that you borrow will have to be repaid, together with interest and charges.
Or you may be able to go the "Home Reversion Plan" route in which you sell all or part of your home (at a steep discount), remaining there as a tenant on a rent-free basis.
You may be able to borrow some (more) money, using your home as security. The money that you borrow will have to be repaid, together with interest and charges.
Or you may be able to go the "Home Reversion Plan" route in which you sell all or part of your home (at a steep discount), remaining there as a tenant on a rent-free basis.
Apologies if I've misread some of the posts, but there is a fundamental difference between "releasing equity" and borrowing against an asset. You're only genuinely releasing equity if you are de facto selling a proportion of the value of your house so that SOMEONE ELSE becomes exposed to future changes in the property's value. If all you're doing is increasing a mortgage or taking out another loan, then you still own the house and haven't shifted any of the price-risk onto anyone else's shoulders.
Edited to add: What he said ^^^
Edited to add: What he said ^^^
DSLiverpool said:
Your right it should be a new thread but someone said to me recently that you should fly 1st class if you can becuase if you dont your heirs certainly will and it struck a chord. I`ll start a thread if my FA cant help.
That is a commonly used sentiment. However, I'm not sure I'd be borrowing money to fly 1st class.Of course, 'you can't take it with you' is true - nice to have the dilemma of where to draw the line.
DSLiverpool said:
terrydacktal said:
DSLiverpool said:
What would you do if you had no mortgage?
Make a point of mentioning it where it's not relevant? WindyCommon said:
Despite the soft blandishments of the equity release industry, the truth is that it isn't really possible to "withdraw" equity from your home. The only true way to access the equity is to sell your home at market value and buy a smaller one.
You may be able to borrow some (more) money, using your home as security. The money that you borrow will have to be repaid, together with interest and charges.
Or you may be able to go the "Home Reversion Plan" route in which you sell all or part of your home (at a steep discount), remaining there as a tenant on a rent-free basis.
I'm often staggered how many people don't quite grasp this.You may be able to borrow some (more) money, using your home as security. The money that you borrow will have to be repaid, together with interest and charges.
Or you may be able to go the "Home Reversion Plan" route in which you sell all or part of your home (at a steep discount), remaining there as a tenant on a rent-free basis.
Even to the extent that a couple I know 'released some equity' from their property, yet couldn't understand why their mortgage payments had gone up.
I kid you not.
It's as if people think someone comes round your house with a bag of cash when property prices rise. Knock knock, well done young man, here's 15 grand, treat yourself.
rockin said:
Although (999 times out of 1,000) you can't make a second charge without formal consent of the first lender, which may be difficult/impossible to obtain.
Surprised you didn't mention that...
??? Surprised you didn't mention that...
I'm sure the potential borrower expected there to be SOME criteria...and anyway how common is it for the primary lender to refuse?
Why single out THAT criterion?
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