There are four key ways to do this-
These choices may be limited by your age, financial income and the amount you wish to borrow.
This is where taking Independent Financial Advice is key. One of our experienced Independent Financial Planners will be able to help you.
So let’s have a look at the options in more detail.
Many borrowers choose to remortgage (switch their current mortgage for a new deal, either with their existing lender or a new lender) every few years in order to take advantage of new rates, mortgage offers or to fit a change in circumstances. The market is very competitive. At the same time, you could look to increase your borrowing.
A rise in your property’s value or an increased income may mean you could increase your mortgage to help pay for major outgoings such as a wedding or your child’s university costs, rather than borrowing separately, and in some cases more expensively, from other sources.
Raising money in this matter needs to be taken only when you understand the full costs. This is where your financial adviser will be able to highlight these to you.
The remortgage section on our website will provide you with the current remortgage rates as an indication of the cost. It’s a great place to start your research.
As the name implies this is an additional mortgage which sits behind your existing mortgage. Second mortgages can be useful if you have an exceptionally good interest rate on your first mortgage or if the penalties for breaking this contact are expensive.
From my experience, this market has become more competitive over recent years. This means that the interest rate and fees have become more attractive. Again, this type of borrowing should not be entered into without you fully understanding the costs and your responsibilities. This is where our financial advisers can help you.
In the past, this has been a popular option for people nearing retirement. When you take into account the cost of moving this is not always the best choice. Taking into account, stamp duty, estate agents fees, conveyancing and removal costs this can quickly add up to many thousands. Also, you might not want to move away from friends and your home might hold special memories. Again our financial advisers will be able to give you an indication of costs.
After paying your selling fees you would have freed up some equity. But you will now have to budget for the rent. Admittedly, you will save on maintenance bills but will lose out on long-term security. You will have no guarantees from your landlord on future rent rates. You will also need to ensure that your income will keep up with inflation.
Our advisers will be able to help you with this.
If you are over 55 years old this may be an option. We are members of the Equity Release Council.
Equity release can play a role in retirement funding and the money can be spent on anything you like. Check out our website to find out more. Again this type of borrowing should not be entered into without you fully understanding the implications. Equity release is a long-term commitment and not right for everyone. Most of all, our financial advisers are here to help you.
In conclusion, if you would like to find out more then why not arrange a meeting. The initial meeting is at our cost and without obligation. Why not contact us today?
Additionally, our financial planners also make use of meeting rooms in-
Also, you can arrange a meeting at your home or by making use of video conferencing at a time that is convenient for you.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. Equity released from your home will be secured against it.