Can I get the equity out of my house without selling?

Posted on 6 January 2008

I'm looking to remortgage for £130,000 to pay off debt. My house has £60,000 equity in it and I have excellent credit rating, but because of the lending crunch no-one can seem to help. Is there a way of getting the equity out on the house without selling? 

Hi Lorraine,

Yes many lenders can lend up to to 90% or 95% of the property value on remortgages, so unless there is some reason that the maths doesn't work out, you should be able to raise something to consolidate, particularly if you can prove that you have been carrying higher payments until now by paying all these separate debts each month. It sounds like you are ready for a mortgage broker to do a search for you. Just give them the property price, the outstanding loan amount, and very importantly, your income.  Charcol can be reached on 0800 358 5560, and they charge £199 on successful completion of a mortgage only, so definitely worth a call.

Please remember that consolidating debt spreads your payments out over the whole terms of the mortgage and can therefore result in a significant increase in the interest paid over the whole term of the debt.  Securing previously unsecured debt on your home also increases the risk to your home.

Katie

Categories: Consolidation of debts, Remortgaging

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