Capital raising is when a mortgage borrower takes out a new larger loan which is used to repay their existing mortgage and leave some money over.
Mortgage capital raising refers to the process of obtaining additional funding for a mortgage, either to purchase a property or to refinance an existing mortgage. It can involve a variety of methods, including borrowing additional money through a second mortgage or a home equity loan, or refinancing the existing mortgage with a new lender.
The process is a usually remortgage and this could be a:
This can be done for a number of reasons, such as to release equity from your home, or to consolidate multiple debts into one single monthly repayment.
Using a remortgage to borrow against the equity in a property is very common. But the reasons behind it can be wide ranging. Lenders will accommodate most requests for home improvements, debt consolidation, new car, new holiday, property investment etc.
The alternative is to take out a further advance, second mortgage or bridging loan, all of which will be more expensive.
