- I want to consolidate my unsecured debts and save money
- I want to release equity from my home, to use it as a deposit on a new property, which could be a buy-to-let or could be upsizing to a new residential and turning my existing property into a let to buy
- I would like to do renovations and extend my existing property and release equity to fund that
How to release equity and cash from your home?
There are three ways to look at realising cash from your home:
- A residential remortgage and capital raise
- A let to buy remortgage and capital raise
- A second charge secured loan that sits on top of your existing residential mortgage, raising the extra funds you need
Why would I choose the following?
- Residential remortgage and capital raise
This would typically be for home improvements, deconsolidation or raising a deposit for a new buy to let on a second property.
Residential remortgage are typically capped at 85%.
- A let to buy remortgage
This is where you need to raise money to have as a deposit for a new residential mortgage and you are going to rent out your existing residential mortgage as a buy to let, hence let to buy.
A let to buy remortgage is typically capped at 75% loan to value
- Second charged loan
Due to the restrictions of your existing lender, which could be the way they factor affordability, a change in your credit status or the fact they will not allow debt consolidation, it could well be a second charge secured loan is the most suitable product for your circumstances.
Second charge lending is typically capped at 75% loan to value on buy to let or let to buy scenarios and up to 90% on residential and in some cases even 100% loan to value.
Lenders will typically base decisions on your credit profile, loan to value and affordability.
This is worked out by looking at income against out-goings, debts and if what you have left is enough to repay the further borrowing.
It is imperative you have a copy of an up-to-date credit report preferably Equifax or Experian. We can the go through this with you so you can fully understand not only your credit score, but credit conduct within the report and we can help you identify any issue if applicable and pick the right lender and product based on this. We have access to lenders and providers for most type of credit and profile.