Yes, you can borrow more money when you remortgage subject to a couple of things.
- The new loan does not exceed the maximum that your income will allow.
- There is enough equity left in the property to meet the lenders criteria. Equity is the term used to describe the amount of money left if the property was sold and the loan paid off, or your share of the property.
People borrow extra money for lots of different reasons, here are a few:
- For home improvements, to add more space or an extra bedroom.
- Pay off unsecured loans or credit cards. This can reduce your monthly outgoings.
- Remortgage to raise extra money to pay off a partner or spouse as part of separation or divorce.
- To raise money to buy another property.
- Remortgage to borrow extra money to help your children with university or set up a new home.
For debt consolidation, your adviser may suggest a third party being present and will make you aware that adding unsecured debt to your mortgage will result in additional interest being paid over a longer period of time.