Are you looking to make the most of your Strathaven property’s value? Whether you’re dreaming of a new kitchen, planning home improvements, or thinking about other financial goals, capital raising could be the solution you’ve been searching for.
In this guide, we’ll explore the ins and outs of capital raising, including its benefits and the various options available to you.
What is Capital Raising?
Capital raising means using the equity in your property to access funds for a variety of purposes. Equity is the difference between the market value of your property and the outstanding balance on your mortgage. By tapping into this equity, you can unlock a source of funds that can be used for a wide range of purposes.
Why Consider Capital Raising?
There are several reasons to look at capital raising:
- Home Improvements: Whether you’re looking to renovate your kitchen, add an extension, or upgrade your bathroom, capital raising can provide the funds needed to turn your vision into reality. Making home improvements can not only can increase your living space but can also increase the value of your property.
- Debt Consolidation: If you have high-interest debt on credit cards or loans, capital raising can be a way to combine your debt and pay it off with a single, more manageable payment. By paying off these debts with funds from your equity, you can save money on interest and simplify your finances.
- Emergency Fund: Life is full of unexpected costs, from urgent home repairs to medical bills. Having a financial safety net in place can provide peace of mind during challenging times. Capital raising can help you build up an emergency fund to cover these costs and protect your financial stability.
- Investments: If you’re looking to take advantage of any investment opportunities, capital raising can provide you with the funds to get started. Whether it’s investing in stocks, property, or starting your own business, having access to capital can make this possible for you.
- Retirement Planning: Planning for your retirement is essential, and capital raising can play a vital role in helping with your financial future. Whether it’s paying in to a pension scheme or investing in other types of savings, using your property equity wisely can help you build a nest egg for your golden years.
Your Options
When it comes to capital raising, there are several options to consider:
- Remortgaging: One of the most common method of capital raising is remortgaging your property. By switching to a new deal or increasing your mortgage, you can release equity from your property to fund your plans.
- Equity Release: Equity release schemes, such as lifetime mortgages or home reversion plans, allow homeowners aged 55 and over to unlock tax-free cash tied up in their property. These schemes provide a lump sum or a regular income whilst allowing you to remain in your home.
- Further Advance: If you’re happy with your current mortgage deal, you may be able to apply for a further advance from your existing lender. This means borrowing extra funds against the equity in your property without switching to a new mortgage deal.
- Secured Loan: Also known as a second charge mortgage, a secured loan allows you to borrow money against the value of your property while keeping your existing mortgage in place. This can be an option for accessing funds without remortgaging.
By exploring the options for capital raising, you can unlock the potential of your property to help you achieve your goals. Remember to consult with a qualified mortgage advisor, such as Ingrid Cairns & Associates, to assess your individual circumstances and find the best solution for your needs.
Your Home (Or Property) May Be Repossessed If You Do Not Keep Up Repayments On Your Mortgage. Some Forms Of Buy To Let Mortgages Are Not Regulated By The Financial Conduct Authority. A Fee May Be Charged For Mortgage Advice. The Exact Amount Will Depend On Your Circumstances But It Will Not Exceed £495.
