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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 |
---|---|---|---|---|---|
3.79% | Fixed | £1,174 | £30 | 75% | |
4.09% | Fixed | £1,198 | £0 | 75% | |
4.12% | Fixed | £1,210 | £1,499 | 75% | |
4.24% | Fixed | £1,224 | £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:
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.
Get things moving, apply for a remortgage.
Free unbiased mortgage advice is just a phone call away.
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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
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