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Capital raising
Releasing money from a property you already own.
If your home has gone up in value or you have paid down the balance, you may be able to borrow against that equity. It is often much cheaper than unsecured borrowing, but it is secured on your home, so it deserves a proper conversation.
Cheaper is not always better.
Moving unsecured debt onto a mortgage usually lowers the monthly payment because the rate is lower and the term is longer. It can also mean paying far more interest over the full term, and it turns unsecured debt into debt secured on your home. We will show you the total cost, not just the monthly figure.
- Home improvements, extensions and loft conversions
- Deposit for a second property or a buy to let
- Debt consolidation, with the full cost set out
- Helping a family member with a deposit
- Further advance with your current lender compared against a full remortgage
Step by step
What we work through
How much equity you have
Current value against the outstanding balance. Most lenders will lend to 85% of value for capital raising, and some go further depending on the reason.
What the money is for
Lenders treat home improvements, a deposit and debt consolidation very differently. Some will not lend at all for certain purposes.
Further advance or remortgage
Borrowing more from your existing lender keeps your current rate on the original balance. A full remortgage puts everything on one rate. We price both.
The real cost
Monthly payment, total interest over the term, and what happens if you keep the borrowing to the end of the mortgage rather than clearing it early.
Questions we get asked
Before you call, these might help.
Is consolidating debt onto my mortgage a good idea?
Sometimes, and sometimes not. It usually reduces the monthly payment, but spreading a five year loan across a twenty five year mortgage can cost significantly more in total interest, and the debt becomes secured on your home. We set out both figures so you can decide with the full picture.
Will I need a valuation?
Almost always for capital raising, because the lender needs to confirm the current value before agreeing the loan. Many lenders pay for a standard valuation as part of the product.
Can I raise money to help my child buy a house?
Yes, this is a common reason and most lenders accept it. The gifted deposit will need to be documented on their application, and we can handle both sides.
Next step
Fifteen minutes will tell you where you stand.
Pick a time that suits you and we will talk through what you are trying to do. There is no cost for the initial advice and no obligation to go ahead.
Prefer to talk now? Call 01282 937599 or email cristian@cdfmortgages.co.uk.