Normally refers to a remortgage when additional funds are taken over and above the amount required to repay the existing mortgage debt which is then used for personal finance purposes.
This normally refers to a re-mortgage when additional funds are taken over and above the existing mortgage debt. The funds are normally used for personal finance purposes.
When you remortgage, (change your mortgage provider but stay in the same property) your new loan pays off the existing/outstanding mortgage and may leave a surplus at the disposal of the borrower. Additional funds are allowed by some lenders for home improvements.
This refers to re mortgages which are used to allow a borrower to release equity (capital) from the property. As a result the new mortgage is for a larger sum.
when you remortgage, (change your mortgage but stay in the same property) your new loan pays off the existing/outstanding mortgage but leaves a surplus at the disposal of the borrower. If the surplus is to be used for home improvements (i.e. increase the value of the property) then some lenders do not regard this as capital raising. See also remortgage.
Where the amount of equity available in a property (taking into account the value of the property and any existing mortgages) is used to secure a loan. Under the Consumer Credit Act the minimum loan amount for capital raising is £25,001.
The act of re-mortgaging a property based on a higher value compared to the original price. The capital raised is the amount left over after repayment of the original loan is deducted from the new loan. Some lenders will also take into account improvement projects as part of the re-mortgage, if they are likely to significantly raise the value of the property.
