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Is getting more money on a mortgage a good way to raise some cash?

12 July 2018

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Question by Louise

Is getting more money on a Mortgage a good way to raise some cash? I have a tiny tiny mortgage on a London property and could do with £50k to spend on other stuff. Would I be better to get the money by remortgaging or borrowing?

Answered by Holly Mackay

Hi Louise

Good question! Mortgage interest rates are incredibly low right now but so are loan interest rates. Either way, clearly the important thing is can you afford to pay the loan/mortgage repayments? Quite simply, the only difference remortgaging is that the money is borrowed against the value of your house and will probably be at a slightly lower rate than a loan which is unsecured so your house isn't at risk. Its always nice psychologically to think you have paid off your mortgage but I'd say its six of one and half a dozen of the other and will depend on what you feel more comfortable doing.

Answered by

Holly Mackay

Founder and CEO of Boring Money

I’ve worked in investment markets for over 20 years. I started out at Merrill Lynch Investment Management and worked at a few big names before setting up my first business in 2008.