Raising Capital

If you are a resident in the UK, raising finance against your home is a cheap and straightforward way of getting hold of some cash. Funds can be raised either by taking a further advance from your lender or by re-mortgaging your existing home loan and increasing its size. However, you must have sufficient equity in your home and, even if you do, you may be uncomfortable with the idea of using your home as security on another home or investment property.

Lending Criteria

How much you can borrow to purchase a property in the UK depends on your income and the size of your deposit. Unusual requirements are very much the norm, rather than the exception.

Releasing Equity

Equity is the proportion of your property that you own i.e. the part that has no mortgage on it. For example, if you own a property worth £200,000 and have an outstanding mortgage of £90,000 then you have £110,000 of equity.

This can then be used to purchase a second home or investment property. You can raise up to 90% of the value of your home as a new mortgage to purchase a second home. Using the above example, you could release £90,000, resulting in a new mortgage of £180,000. The first £90,000 covers your original mortgage; the balance can be used to buy your second home or investment property.