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

Louise | Greater London| 07/09/2017 | 1

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Louise's question in full

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?

Holly Mackay's Response

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 mortgagee 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.

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Holly Mackay

Founder and MD of Boring Money, Holly Mackay has been working in the investments space since 1998. She read Modern Languages at Oxford, with a special focus on Mediaeval French which was deeply interesting and arguably utterly useless.

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