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Mortgage Advisor & Director
What is an unencumbered property?
An unencumbered property is a property that is mortgage-free with no loans or charges against it.
There are many reasons why you may look to raise a mortgage against an unencumbered property.
Our experienced advisors have helped many homeowners like you to get the best deal possible on their new mortgage.
Complete our simple online form today to get started or carry on reading to learn more.
Reasons for raising a mortgage on an unencumbered property
Typical reasons people with unencumbered properties consider getting a new mortgage include:
- Releasing equity from your home
- Helping out children or family members with a deposit
- Freeing up cash to buy a new property
- Finance a buy to let investment
- Buying a holiday home
- Paying for an extension or renovation works.
There are various options when it comes to freeing up equity from an unencumbered property.
As with any other mortgage, lenders will be concerned with the purpose of the loan, affordability and income, existing financial commitments and your credit history.
Mortgaging to buy out an ex-partner
Financial complications often arise in the event of relationship breakdowns. If you are a homeowner alongside an ex-partner, you may wish to mortgage the property to buy them out and retain the home in your name.
While the easier option may be to sell the property and split the asset, there are circumstances where this may not be possible, for example, if there are no other suitable properties in the area and you need to remain nearby for schooling or to be close to family.
Get in touch with one of our advisors who can talk you through your options.
Mortgaging an unencumbered property with bad credit
If you have bad credit and are looking to mortgage your home, don't despair.
There are lenders who are prepared to deal with applicants with a blemished credit history, and your situation may not be as bad as you think.
There is no 'acceptable score' when it comes to a credit rating; the lender will be more concerned with the age and severity of the bad credit. There are many reasons why you may have bad credit on your record, ranging from a few missed payments to CCJs and IVAs. Complete our simple online form and one of our advisors will be in touch to discuss your situation with you and advise you on the best way forward.
If you are looking to improve your credit rating, there are a few steps you can take.
- Access your credit record with the main credit agencies.
- Check for any inaccuracies - you can apply to have these rectified.
- Make sure you are registered on the electoral roll.
- Use credit sensibly and pay it off.
Credit agencies update their record regularly, roughly every four weeks. You should see your credit rating start to improve after a few months.
Mortgaging an inherited property
In the event that you have inherited a property outright and are looking to raise a mortgage, while this is not typically a mainstream lender offering there are specialist mortgage providers able to facilitate this. Get in touch with one of our advisors to learn more.
Mortgaging an unencumbered property to pay off debt
You may own your home outright and are looking to mortgage to pay off debt experienced in other areas, even to pay off business debt or tax.
There are various options for a homeowner to mortgage to pay off debt, complete our simple online form today, and one of our advisors will be in touch to discuss the best approach forward.
What if my unencumbered property is in poor condition?
You may have bought a house outright before considering a mortgage, which is regarded as a reliable investment since the value of the property is likely to increase over time.
If you have bought a house in poor condition to develop and sell on, you may find you need additional finance to complete the development. While the majority of lenders will impose a 6 or 12-month minimum ownership before accepting a mortgage application, other lenders will accept applications from day one.
As long as the property meets basic standards meaning it is habitable, you are likely to be able to secure a mortgage.
To be classed as habitable the property must:
- Be watertight
- Have running water and electricity
- Have a basic kitchen
- Have an indoor bathroom
- Is self-contained and safe to live in
If your property does not meet these standards, fear not. There may be other financing options available to you that do not require the same standards, for example, a bridging loan. Complete our online form today to get started.
How can I learn more?
As a whole-of-market mortgage broker, at Teito, our team of experienced advisors have access to specialist lenders and deals not generally accessible to the general public.
We have helped homeowners like you to get the best deal possible on their mortgage. Complete our simple online form to get started today.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.