Releasing Equity in your home

[HRH]

Hi all I have between 15-25k in my home, how do I go about releasing 5k from this? Is it a long drawn out process? does the money HAVE to be used for home improvements? Do they check?

Thanks

[KathyWoolfe]

Usually the companies that do this have a minimum age requirement.
Otherwise it's just like a second mortgage ......

[Sausage Surprise]

Just ask your lender for a further advance

[HRH]

Usually the companies that do this have a minimum age requirement.
Otherwise it's just like a second mortgage ......

Can I not just do this through my mortgage company?

[PAH]

Hi all I have between 15-25k in my home, how do I go about releasing 5k from this?

I think you'll find it will be releasing itself without any difficulty as the house prices dive into negative equity.

[KathyWoolfe]

Can I not just do this through my mortgage company?

Not all mortgage companies offer equity release - AFAIK.

Yes, you just apply to increase your existing mortgage and use the extra equity as collateral.

I'm not an expert by the way.

[Iron Condor]

Hi all I have between 15-25k in my home, how do I go about releasing 5k from this? Is it a long drawn out process? does the money HAVE to be used for home improvements? Do they check?

Thanks

Due to the risk of a market fall most lenders dont want to lend more than 90% of the property value these days.

So if your property is worth 120K and your mortgage is say 100K, then you might be able to increase your loan to 105K.

But if its worth 180K and the mortgage is 160K, they will probably say no in this market.

[moorfield]

Hi all I have between 15-25k in my home, how do I go about releasing 5k from this? Is it a long drawn out process? does the money HAVE to be used for home improvements? Do they check?

Thanks

Sell your house. Buy a house £25k cheaper. Hey presto, you have £25k cash.

[milanbenes]

does anybody remember the old days, parent's and grandparent's generations when the idea was to pay off the mortgage

funny old world

we're heading into a potential slump and people want to increase their credit liabilities

what do I knows eh

Milan.

[PAH]

I know people that have gone silly extracting equity from their homes to fund frivolous things.

They seem to think just because on paper their house is worth a lot more than they paid that they can extract that money as if it's already theirs.

They seem to ignore the fact they still have to pay it back, and on a repayment scheme of 20 or more years they'll be paying a damn site more interest than a normal personal loan.