|
|
|
|
|
Capital Raising -
As an alternative option to a personal loan, it may be possible to raise additional money against the equity in your house which is known as capital raising.
This can be achieved by either approaching your existing lender for a Further Advance or by remortgaging your property to another lender with the purpose of repaying the original loan but also releasing some of the equity.
For remortgages most lenders would consider the release of equity or capital raising for any legal purpose. However they will not usually consider loans for business purposes or trading on the stock exchange.
For loans with higher loan to value ratios, there may also be restrictions for debt consolidation purposes but lenders should consider each case on it’s own merits.
Depending upon the reason given, lenders may request supporting documentation such as:
Personal loan repayment may need proof of previous payments made
Home improvements may require builder’s estimates or land purchase if it adjoins the property.
School fees would be considered if part of a school fee investment strategy.
However don’t let this put you off as remortgaging is becoming easier and more popular as house prices continue to rise.
|
|
|
