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We owe £60,000 on a property worth £120,000. Can we release any equity?

Posted on 2 July 2013 by Caroline


We owe £60,000 on our mortgage and the property is worth £120,000 can we release equity?

Caroline,

On the face of it there shouldn't be any reason why you can't release equity from your property.

The actual amount you can achieve is likely to be dependent on your actual financial situation (income, outgoings, credit history, etc.) and the purpose for the capital raising. Most lenders will allow you to raise money for 'any and all legal purposes', but may cap the loan to value, for certain things they deem higher risk, such as business purposes, tax bills, etc...

To find out exactly what you can / can't do please let me know and I'll arrange for you to speak to one of our consultants, who can explain more how we can help you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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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.

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