Remortgaging to raise capital

If your home is now worth substantially more than is left to pay on your mortgage, then remortgaging could help you release some of the value built up in your home. Many people do this to pay off debt. We would recommend first consulting Carrington Dean, experts in Scottish Trust Deeds and Debt Arrangement Schemes. We trust them to advise our clients on debt issues.

However, there are many other reasons you might have for borrowing against your home, including:

• Home improvements
• A car
• A holiday
• University costs
• Deposit to help a family member buy a first home
• A marital settlement
• Debt consolidation.

However, you can’t borrow against your home to pay tax liabilities, and some companies won’t lend for business-related purposes. A good mortgage broker such as Your Mortgage Expert can advise you on the most appropriate type of lending for the purpose you have in mind.

Some points to bear in mind

Your monthly payment will increase, as will your loan-to-value, meaning you won’t get the cheapest rates available. Because you’re borrowing more, you’ll pay more in interest over the term, especially if you also decide to extend the term of your mortgage. You will be securing additional debt against your home, meaning if you don’t pay, your home could be repossessed. If you’re increasing your mortgage debt it’s even more important that you have some insurance in place in case you are unable to work before the end of the mortgage term.

Get unbiased, expert advice

If you’re borrowing a substantial amount, the right mortgage could make a lot of difference to how much you pay. For unbiased, expert advice on the best mortgage for you, contact Your Mortgage Expert on 0141 471 4545.