Equity in the home, that is the difference in the value of the property and the amount owing, can be used to obtain additional finance to buy-out a co-owner, or to pay for such things as renovations, holidays, and school fees.
Opportunity to do the things you want to do now rather wait until you have the cash later. Lenders will usually only allow borrowers to either increase an existing loan, draw-down or a new loan only if the total amount of the loans does not exceed 80% of the value of the property. Otherwise, some lenders may require Lenders’ Mortgage Insurance which essentially protects them in case you default. This will be an additional cost to the borrower.
The loan is secured against the value of property being financed. This means, if the borrower defaults in their repayments and cannot repay the amount owing the lender may compel them to sell the property to settle the debt in full and call on any personal guarantees provided to support the loan.
The borrower will be required to pay interest at a fixed or variable rate or a mix of the two on the principal outstanding and any agreed upfront, ongoing and exit charges
To be matched with a Multi-purpose Loan bidder, just follow our anonymous Home Loans/Multi-Purpose listing process.
