Can I get a mortgage on a mortgage-free property?

When there is no mortgage on a property – you have repaid any mortgage and own your home outright – it is said to be mortgage-free. The technical term for such a mortgage-free property is an “unencumbered” property – it is unencumbered by any mortgage, loan, charge, or other financial restriction.

Why mortgage an unencumbered property?

If you own your home outright, there is valuable equity locked up in its market value. You might want to release some of this potential to raise extra cash – for any number of reasons, but these might include and are not limited to:

the funds to renovate, extend or improve your home; you plan to move home but want the funds to keep the existing property to let out to tenants; or to invest in other property; to consolidate debt.

To raise those funds, you have the option of remortgaging your current home. Strictly speaking, of course, a remortgage is the replacement of one mortgage by another one. In this case…

Read more
  • 0