What can capital raising be used for?
Common purposes include home improvements, buying another property, supporting family or reorganising finances. Lenders set their own acceptable and restricted purposes.
How much could be released?
Available borrowing depends on property value, current mortgage balance, maximum loan-to-value and personal affordability.
- Current property valuation
- Outstanding mortgage and charges
- Income and commitments
- Requested purpose and amount
- Mortgage term and age
Remortgage or further advance?
A new lender may offer a competitive overall package, while a further advance keeps the existing mortgage in place. Product fees, legal work, early repayment charges and different end dates should be compared.
Think beyond the monthly payment
Extending the term can reduce the monthly increase while raising the total interest paid. The recommendation should consider overall cost, flexibility and the risk of securing more borrowing against the home.
Frequently asked questions
Can I release equity for a business?+
Some lenders allow defined business purposes and others restrict them. The business position and affordability may also be reviewed.
Can I raise a house deposit for my child?+
It may be possible, subject to affordability and lender policy. The gifted-deposit requirements for the child’s purchase also need consideration.
Will I need a new valuation?+
The lender will assess the property, potentially using an automated, remote or physical valuation.