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When you remortgage to raise capital, you essentially replace your current mortgage with a new one, which could be for a larger amount. The additional amount you borrow on top of your existing mortgage is released as a lump sum, which you can use for your financial needs.
Based on a mortgage of £300,000 at 75% LTV and 25 years
| Speak with Us | Interest Rate | Mortgage Type | Monthly Repayment Amount | Total Fees | Max LTV |
|---|---|---|---|---|---|
![]() | 4.14% | Fixed | £1,219 | £30 | 75% |
![]() | 4.18% | Fixed | £1,216 | £1,025 | 75% |
![]() | 4.18% | Fixed | £1,215 | £999 | 75% |
![]() | 4.20% | Fixed | £1,220 | £1,403 | 75% |
The amount of equity you need to have will depend on how much you wish to borrow. For example, if your property is valued at £300,000 and you have an outstanding mortgage of £150,000, you have £150,000 in equity. If you want to borrow an additional £50,000, your new mortgage would be £200,000, resulting in a 67% LTV ratio. Most lenders prefer an LTV of 80% or less, meaning you need to have a decent amount of equity to be eligible for a capital raising mortgage.
The funds from a remortgage to raise capital can be used for a variety of purposes, including:
Before proceeding with a remortgage to raise capital, it’s essential to talk to a mortgage broker Ascot Mortgages. We can help you understand the implications of increasing your mortgage, compare different mortgage deals, and find the best terms for your situation. We can also assist in calculating the impact of the new mortgage on your monthly payments and long-term financial health.
Get things moving, apply for a remortgage.
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