Raising capital (also called capital raising or additional borrowing) is a common reason to remortgage, including for high net worth borrowers. You may want to release equity for home improvements, property investment, debt consolidation, tax planning-related cashflow needs, or other major expenses. Whether it is possible depends on affordability, LTV, and lender policy.
Lenders will generally assess:
- Affordability: whether your income supports the higher borrowing under stress testing.
- Property value and LTV: how much equity is available and what LTV tier you fall into.
- Purpose of funds: some purposes are straightforward; others may trigger more questions.
- Existing commitments: other mortgages, loans, and regular outgoings.
In high value cases, lender choice can narrow as loan size increases, and valuations can become more involved. If your income is complex (bonus, dividends, business ownership), it is especially important to choose a lender whose criteria aligns with your income structure.
It is also worth factoring in early repayment charges on your current mortgage and any legal/valuation fees. A good approach is to model the total cost: rate, fees, and the benefit of releasing funds. That way you can decide whether to remortgage now or wait until a more suitable point in your current deal.
Hearthstone Mortgages (trading name of Hearthstone Advisory Limited)
Tel: 01753 463391 | Email: enquiries@hearthstonemortgages.co.uk
Registered office: Europa House, Marsham Way, Gerrards Cross, Buckinghamshire, SL9 8BQ
Company No: 10563329 | FCA FRN: 945282
Warnings:
THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME OR PROPERTY.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
We are a credit broker, not a lender. We may receive commissions that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.