Is it possible to unlock equity from my house?

[acealfa]

I hope this isn't too confusing but I bought my house a couple years ago for £105k (£95k mortgage). I've recently had it valued after renovation at £140k. Is there anything I can do to unlock that money without selling?

Is it just a case of re-mortgaging?

Another question to add which I've been thinking about. I see the best mortgage deals are 65% LTV which I would now fall under. Is this something I could do for lower payments?

Edited by acealfa on Thursday 19th October 15:01

[TooMany2cvs]

acealfa said:

I hope this isn't too confusing but I bought my house a couple years ago for £105k (£95k mortgage). I've recently had it valued after renovation at £140k. Is there anything I can do to unlock that money without selling?

Is it just a case of re-mortgaging?

Yes.

Going to a £120k mortgage would be about 85% LTV, so not approaching the riskier, higher-interest, high LTVs, and free £25k cash. You'll pay back about £35k over the life of the mortgage to get it, though, more if/when rates rise...

[acealfa]

Thank you for the reply. I see I've been lucky by only fixing for 2 years as the rates are now half of what I originally signed up for!

[Alex]

I also need to remortgage to raise some cash. Do you have to pretend the money is for home improvements or something or don't they ask?

[Sarnie]

Alex said:

I also need to remortgage to raise some cash. Do you have to pretend the money is for home improvements or something or don't they ask?

They will ask yes.............

[clio007]

Years ago, I had a customer looking to raise some funds for some home improvements.

Little did I know that the home improvements were creating a side extension for a 'massage parlour' . The woman was in her late 50's too. Only found out when the house was repossessed a few years later

[Sarnie]

clio007 said:

Only found out when the house was repossessed a few years later

.....which is the exact reason why lenders ask what the money is for.

[James_B]

Alex said:

I also need to remortgage to raise some cash. Do you have to pretend the money is for home improvements or something or don't they ask?

That’d be mortgage fraud. You may well get away with it, but if you don’t, it’s a CIFAS marker, and no mainstream credit for a good few years.

[WindyCommon]

acealfa said:

I hope this isn't too confusing but I bought my house a couple years ago for £105k (£95k mortgage). I've recently had it valued after renovation at £140k. Is there anything I can do to unlock that money without selling?

...

Edited by acealfa on Thursday 19th October 15:01

Take a look at this thread for some discussion on just this topic: https://www.pistonheads.com/gassing/topic.asp?h=0&...

[hunton69]

James_B said:

That’d be mortgage fraud. You may well get away with it, but if you don’t, it’s a CIFAS marker, and no mainstream credit for a good few years.

Total garbage.

How will they ever know what you spent the money on

[dbs2000]

Be careful doing this, my old boss unlocked 25k that he put brilliantly towards an M3 in 2008. We all know what happened next......

[227bhp]

hunton69 said:

James_B said:

That’d be mortgage fraud. You may well get away with it, but if you don’t, it’s a CIFAS marker, and no mainstream credit for a good few years.

Total garbage.

How will they ever know what you spent the money on

When it goes tits up.

[Paul O]

My mortgage company provides equity release for home improvements for the term of the mortgage, but for none home improvements the release has to be repaid at a maximum 10 year term.

Be honest about what its for and they will be honest about whether or not they will lend you the money - and how much it'll cost you.

[acealfa]

I'm sure most people lie.

[river_rat]

I've done this twice - the mortgage company weren't that interested in what is was for and certainly didn't check anything afterwards.

[Caddyshack]

Saying that it is to buy a car would be fine, they won't like "to pay a tax bill" or "to start a business" but things like holiday home, caravan etc are all fine.

Harry metcalfe told the bank he needed a new grain silo on his farm to raise the £250k to start Evo magazine.

[Sarnie]

Just tell the truth.

I've done plenty of capital raising mortgages for all sorts of reasons.......458 Speciale earlier this week, no problem.

If they say no, it will be for good reason..............often, clients need protection from themselves!

[Sheets Tabuer]

dbs2000 said:

We all know what happened next......

Did he have a whale of a time in an M3?

[James_B]

hunton69 said:

Total garbage.

How will they ever know what you spent the money on

That’s a pretty stupid reply.

Getting away with a crime doesn’t stop it being a crime.

As I said, you may well get away with it, but if you don’t it will be a problem.