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Capital raising is a way of releasing the equity in your home for pretty much any purpose you can think of – whether you want to renovate your property, put the funds towards the purchase of a holiday home, pay for a wedding, buy a yacht … unlike some other types of lending, there are very few restrictions on what you can or can’t use the money for (although some lenders may stipulate that the funds can’t be used, for example, for gambling, stock market or business investment).
For most borrowers, capital raising takes the form of remortgaging. This often allows homeowners to secure a better interest rate than their existing mortgage, while at the same time releasing equity in the property. Many people use capital raising by remortgaging as a means of “buying out” their spouse’s share of the property during a separation or divorce.
It is possible to use capital raising as a means to consolidate other existing debts. While this can have the advantage of reducing interest rates and monthly payments compared to existing personal loans or credit card debts, it’s important to remember that by extending the borrowing over a longer period you may be paying much more interest in the long term.
Contact Just Mortgage Brokers for capital raising advice from our expert team – we have years of experience in handling all types of mortgages, so you can be confident that you will receive professional, impartial mortgage advice.