Over time, it’s possible that you will build up equity in the property you own. This can happen in two ways: firstly, you can pay down the amount you have borrowed from a mortgage lender over time. And secondly, the value of your property may have increased a percentage. This equity is often accessible to you by increasing your mortgage and many people use this money to invest in another property.
In most cases, you would need to remortgage to release equity from your existing property. Alternatively, you could seek a further advance from your present mortgage lender. The process of applying for a remortgage is similar to any mortgage and will usually be based on your ability to repay the amount you want to borrow. Your personal financial situation, such as your income as well as your outgoing expenditure will be reviewed before your application is approved. The bank or building society will also review your credit history and any additional debt you may have, such as credit cards or other loans.
Each mortgage rate usually has a specific term, such as two years, three years or five years, for example. If you have an early repayment charge you may have to wait until the term has ended to apply for a new mortgage. However you may find that it makes more sense financially to pay a redemption fee on your mortgage so that you can release the money you need and take out a mortgage with another lender. Before you decide on this, we strongly recommend you speak to a qualified mortgage advisor to ensure you have considered all the options available.
Whether you are looking to borrow more money from your existing mortgage or you would like to remortgage to release equity with a new bank or mortgage lender, Private Wealth Mortgages can help. Give us a call on 01403 270006 and one of our friendly, impartial and experienced mortgage advisors will be happy to present you with the appropriate options for your personal circumstances.
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