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Unencumbered Property

Posted on 16 November 2010 by julie

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I own a property (worth about £95k), but because I didn't buy it with a mortgage I am unable to borrow against it to do some improvements and pay off existing debts. Can you help?



Whether or not we can help will depend on numerous factors, but in principle it should be possible.  Just because you purchased without requiring a mortgage does not necessarily preclude you from obtaining one now.


I do not know who you have tried already, but the majority of High Street Lenders will insist that you have owned the property for 6 months before they will consider a mortgage application.  However, there are Lenders who will consider this without imposing any time restriction.


For these Lenders, you will need to meet their Lending criteria and this is where a good independent mortgage broker can help you.  By finding out your own personal circumstances, income, credit commitments, employment, residential history etc, they will be able to advise you which Lender will accept an application and also recommend the type of mortgage product you should take.  I recommend that you speak to one as soon as possible.



Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT. John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.