When you have completely paid off your mortgage and inherited a property with complete cash, this indicates that the property is unencumbered. You will be wanting a lender to class this as unencumbered. There are certain things to do while you know about unencumbered remortgage. While you are having an unencumbered home indicates that you are not having any debts secured against the property. The sole reason could be because of the following reasons.
- Your mortgage must have been paid off.
- The property you bought must be in cash. In case the home owners are looking to remortgage at any point, there could be some reasons attached to it.
- You may release the equity for buying a second home.
- It can cover the cost of renovations.
- It could be for the sole purpose of holidaying, buying a car or maybe for a wedding.
- There must be the reason for consolidating the debts.
- You may raise cash for buying a new property.
While you apply for a mortgage, then there should be some criteria towards it.
- There must be a criteria of meeting the requirements.
- The maximum lending calculations are based on your income.
- You have to check the credit history.
- You need to analyze other debts and outgoings.
- You can apply the maximum loan value ratio.
Is it possible to mortgage a property you own in full?
In case you have an unencumbered property and wish to remortgage the same, the lenders would be interested to know the following points.
- The purpose of the property like it should be for letting, living or maybe for renovating.
- Your income to be showed in order to use affordable calculations.
- In case you have any other debts in place like loans, mortgages or credit cards are to be shown.
- In case you have any bad credit issues that includes bankruptcies, CCJs or IVAs are to be discussed in full. You may even use an inherited property for raising a mortgage.
People having a bad credit score can find it impossible securing a competitive remortgage. The bad credit mortgages could be a niche product. There must be some terms depending on the following factors.
- The time when the adverse credit issues have occurred. The longer it had been, the better it is.
- The values involved has to be known.
- The severity of the issues have to be known.
It is possible to remortgage a property in poor condition. The key condition a property is put on mortgage is that it should be habitable. The following conditions are generally checked.
- The property should be watertight.
- The kitchen and bathroom should be fitted with equipment and it should be useable.
- The property should be self-contained and safe to live in.
In any case the property is tagged as uninhabitable, you will have to look at refurbishment and have to bridge some finance in order to bring the property at a livable condition. Take the help if remortgage advisor and he will provide you the full guidance on how to use your property for raising some funds.