Rumplestiltskin!

I am looking to raise a little cash for some home improvements (conservatory / loft conversion etc) & want to generate the cash from my house that is fully paid for & mortgage free. Does anyone know a provider that offers this - I would probably look to borrow the money over a mortgage length period.
Is it as simple as a secured loan over a long period ?

Any help appreciated.

Rump.

TopBanana

It's just a straightforward mortgage you need

RaZe-=Buzz=-

yep! I got a "further advance" of some money on top of my mortgage just this week. Mortgage was for less than the value of the house, so I just borrowed a bit against it.

Fixed interest rate for 5 years, interest only. Means I get 5 grand for £21 a week. Not the cheapest way to borrow in the long run, I'll pay back about 12 grand, but theres nothing to say in 5 years time I cant pay it back and pay a small penalty to clear it.

dsmith

"a secured loan over a long period" = "mortgage"

They'll be falling over them selves for your business.

Deano

RB5320

I have done a similar thing. I have a very small mortgage compared to the value of the property. I did what is called an equity release loan. I think pretty much any mortgage provider will happily lend you money and it works exactly the same as a normal mortgage. I personally used HSBC as the loan is fully flexible, meaning I can make over payments any time I like with no penalty. If you take the loan out over 25 years you will obviously pay a hell of a lot of interest in the long run. But if you pay chunks off as and when you can it can be a very cheap (appprox 5% interest) way of borrowing the money.
Also, it didnt matter in my case what the money was for - I told them it was to buy a car.
Incidentally, HSBC also calculate the interest on a daily basis so when you pay off a lump sum it immediately reduces the capital you are paying interest on. A lot of mortgage companies still only reduce the capital after 12 months. This bit is a bit hard to explain but if you speak to a mortgage adviser and mention equity release loan and daily interest I am sure they will point you in the right direction.
Hope this helps.

Steve

Rumplestiltskin!

Thanks all.
RB5320, I bank with HSBC myself & have to say that they have been exceptional in the 15 years I have been with them - so will follow your advice & contact them about this.

Rump.