Mortgage terminology and reasoning

[liger]

Hi,

I have gotten myself a little bit confused looking for some information online.

Are remortgages, equity release and top up mortgages effectively all the same thing?

Also if you are applying for one what reasoning do they generally accept. I'm sure if someone said I want a top up because a year ago my circumstances were different and I had to put everything I had into it because you bankers weren't playing ball otherwise they'd look at you with 2 heads and a frowny face.

For example....

A property valued at €250k
Mortgage €100k

If I wanted to release funds to buy a small cottage in the country for 90k could I just rejig the current loan or do the banks only do top up/equity release for home improvements.

I struggled to find information regarding these on the line.

 

[Brendan Burgess]

Are remortgages, equity release and top up mortgages effectively all the same thing?

Equity release could involve a partial sale of your home. So I would not use it for increasing your mortgage.

Remortgages and top-ups are roughly the same, although I have heard people describing switching lenders as remortgaging.

A top-up would tend to be smaller - €20k for some home improvements.

A remortgage might be taking out a mortgage on a property on which the mortgage has been paid off.

AFAIK, lenders are currently only increasing people's mortgage for home improvements and not to buy other property.

Pepper might be an exception.

Brendan

 

[liger]

A top-up would tend to be smaller - €20k for some home improvements.

A remortgage might be taking out a mortgage on a property on which the mortgage has been paid off.

AFAIK, lenders are currently only increasing people's mortgage for home improvements and not to buy other property.


Brendan

Thanks Brendan.

There's certainly a lot of jargon that seems to be used to dazzle and confuse the poor consumer.