Capital Raising And Debt Consolidation
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Capital Raising
A capital raise through remortgaging means borrowing more money against your property when you switch to a new mortgage deal. It’s often used to release equity — the difference between your property’s value and the outstanding mortgage — and access extra funds for other purposes.
This process involves increasing your mortgage loan size, either by switching lenders or staying with your current one, and taking out a larger loan than your existing mortgage balance.
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Common Reasons People Capital Raise
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Home improvements (e.g., extensions, new kitchen)
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Debt consolidation
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Helping family members (e.g., with a house deposit)
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Investments or business purposes
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How It Works
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Property is valued to confirm how much equity you have.
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We assess your affordability and credit profile to ensure the new mortgage is suitable.
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You can raise capital as a lump sum, paid upon completion of the remortgage.
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The new mortgage replaces your old one, with the additional borrowing included.​
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Things to Consider
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A capital raise will increase your monthly repayments, so affordability is key.
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It may extend your mortgage term or result in a different interest rate.
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If consolidating debt, it’s important to understand the long-term costs.
Debt Consolidation
Debt consolidation can be a helpful way to manage multiple debts and make repayment easier. If you are considering debt consolidation, it is important to understand how it works and what the benefits and risks are.
When you consolidate debt, you take out a new loan to pay off existing debts. This means that you will have one monthly payment instead of several. Debt consolidation can help you better manage your cash flow and keep track of your debt. However, it is important to understand that consolidating debt will not reduce the amount you owe. It may also come with additional costs, such as fees and interest charges.
Before you consolidate debt, be sure to consider all your options and understand the pros and cons.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
