If you bought your home and did not require a mortgage or if you’ve paid off your mortgage then this is known as owning an ‘unencumbered property’.
Currently 33.2% of properties in the UK are now owned without a mortgage. While 30.4% of properties in the UK have mortgages secured against them. The remaining residential properties in the UK are owned by Buy to Let investors.
Contact your Basingstoke based mortgage advisers for a free initial consultation
Why Do People Remortgage a Property if They Own It Unencumbered?
Raising funds via a remortgage is a common way to raise the money needed for home improvements, consolidate debts or to fund personal projects or gift money to family. It can also be a way of raising the deposit to purchase a second property such as a Buy to Let or second/ holiday home. Lender will usually want to know what the money is being raised for and reject an application if the money is for business purposes.How Much Money Can I Release From My Home?
You can usually release up to 90% of the property value subject to affordability and credit checks. If you are unsure on the status of your credit file check out our blog on How to check your credit report. It will vary from lender to lender how much you can borrow as all have slightly different affordability criteria but Contact Us and we can talk you through your options.If you are over the age of 55 then equity release could be an option for you. Get more information from our equity release section to see further details on how this option could help you. Our expert advisers will give you the advice and provide you with what option is best.
You will need to take legal advice before releasing equity from your home as a lifetime mortgages and home reversion plans are not right for everyone. This is a referral service.
How Do I Know If I Am Eligible?
You will have to own your property with no mortgage for it to be classed an ‘unencumbered’ and you will also need to pass affordability and credit checks. Because you will be taking out a mortgage against your unencumbered property the process to a traditional remortgage is very similar.Contact Us and speak to an adviser for your free personalised illustration from your Basingstoke based mortgage advisers.
