How Can I Use My House To Raise Some Cash?Posted on: 27 October 2008 by Gareth Hargreaves
50connect reader Daphne asks expert Peter McGahan about the options available to homeowners looking to take out a loan.
Other than equity release, what can homeowners do to help raise some cash? Independent Financial Adviser Peter McGahan assesses the options.
My sister and mother died in the last few months and I was left to pay for my mother's funeral - so I’m now in debt because of various reasons. I do however own my own house worth approximately £150,000.
I do not want to move as I live near my work, but I was wondering other than taking out another loan is there any other way I can use my house to raise some money? I would like to raise approximately £30,000 if possible.
I know you do not suggest equity release but is there anything that might help, or any other thoughts as to how to raise some cash?
I am not a lover of equity release as it’s an expensive method that’s over-used. That’s not to say that it may not be an option.
If you are looking to raise cash, whatever method you use is going to involve a loan which is what equity release is. The key is to borrow either at the cheapest rate or the cheapest and most convenient rate.
99 per cent of the time an interest only mortgage is going to offer the cheapest terms as the rate is most favourable especially with your loan to value.
If you don’t want to make any interest payments and are happy for the loan to roll up then seek advice from a fee based Independent Mortgage Broker who will take you through the myriad of options available.
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