Mortgage Top-Up

If your income has increased and/or your equity has improved due to inflation of house prices, you could top-up your mortgage to give yourself some extra cash. The amount you can borrow will depend upon your equity and your ability to pay.

A lender will not offer you more than you can repay, irrespective of how high your equity is, because to do otherwise would be irresponsible.

You might need extra cash to:

• Pay for improvements to your home, such as an extension or conservatory.
• Pay for a dream holiday - particularly with older people on special anniversaries.
• Buy a new car or a boat.
• Pay off other debts or credit cards to reduce or eliminate high interest payments.

An important factor to keep in mind is that mortgage top-ups are subject to mortgage interest the same as your original mortgage is. If you use the cash for short-term use, such as a car that will last only a few years, you could be paying the interest on it for a long time. This could make for a very expensive car! So use such top-ups only for long-term projects that are worthy of the cost.