You can use the equity, or extra cash value, you have in your home for any purpose. You may want to make essential home improvements like a new kitchen or bathroom. You could build a conservatory or buy a new car. On the other hand, you may want to use the cash to pay off other, more expensive debts like store cards, credit cards and other loans. How you spend the money is entirely up to you - even down to treating the family to a well-deserved holiday!

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

The following indicative calculations may be used.

Here is a quick guide:

If you're a single applicant, multiply your income by 3.5
eg. Declared income £40,000 X 3.5 Maximum advance = £140,000

If you're joint applicants you can choose one of two calculations, whichever suits you:

Some lenders use different methods for calculating how much you can borrow and we may still be able to help if you need to borrow more than the above methods of calculation.

A loan secured against the value of a property to help you buy a home, pay for home improvements or to cover many other sorts of spending, for example, consolidating existing debts.

Think carefully before securing other debts against their home. Your home may be repossessed if you do not keep up repayments on your mortgage.

A repayment mortgage is a mortgage contract under which the customer is obliged to make payments of interest and capital which are designed to repay the mortgage over the stated term.

As long as you keep up the payments, the whole loan will be paid off over the term of the loan.

Your home may be repossessed if you do not keep up repayments on your mortgage.

With this type of mortgage you borrow for a fixed period of time, but your monthly payments only cover the interest on the loan. That means at the end of the term you must pay off the capital in one lump sum.

It is your responsibility to build up savings, usually through some form of repayment vehicle, so you have the money you need to repay the capital (the amount you borrowed) at the end of the term.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Most lenders will be able to offer you different ways of paying interest on your loan. The kind of mortgage you choose will depend on which one you feel most comfortable with.

There are five main types:

Variable Rate
Your payments go up and down as the mortgage rate changes (mortgage interest rates tend to move in line with the base rate set by the Bank of England, but there is sometimes a delay). Lenders set their own standard variable rates of interest.

Base Rate Tracker
The interest rate varies (up or down) directly in line with the Bank of England base rate.

Fixed Rate
The interest rate is guaranteed to stay at a set level for a set period, regardless of any changes in the base rate.

Capped Rate
The interest rate varies but doesn't go any higher than a set level, even if the base rate does go higher.

Discounted Rate
Your payments are variable, but they are set at less than that lender's standard variable rate for a period of time. At the end of the period, you are usually charged the lender's standard variable rate.

Flexible mortgages are designed to allow you to make extra payments whenever you want to and benefit immediately. Some also let you reduce your payments or take a payment holiday.

Another variation is the "all in one mortgage" where you have your current accounts and savings with your mortgage lender. Your mortgage interest and monthly payments are then worked out based on your mortgage balance less the balances in your current and savings accounts.

Think carefully before securing other debts against their home. Your home may be repossessed if you do not keep up repayments on your mortgage.

There are many types of insurance you might need when you take out a mortgage:

Everyone needs insurance to cover their home in case the building is damaged or destroyed. You may also want to cover the contents against loss or damage.

There are also insurance policies to cover your mortgage payments eg. If you become ill, have an accident, become unemployed or die.

For more information or a no obligation quote click here