Unencumbered property is a type of asset which is free and clear of any encumbrances such as creditor claims. The owner can sell the property without having to worry about paying off his or her creditors first. Mortgages on unencumbered property is getting more common in the UK. The price for buying an unencumbered property depends on the location, size and condition of the house. It also depends on whether you are looking at a new build or an old one. However, if you are looking for a cheap mortgage then it is best that you buy an unencumbered property.

The main advantage of buying an unencumbered home is that you do not have to pay back your loan until you move out. This means that you will be able to save money by living rent-free while you are still paying off the loan. If you want to get rid of some debt then this could be a good option. You should always check with your bank before taking out a mortgage. They may require you to put down a deposit of 10% of the total value of the property. If you cannot afford that amount then you might need to look into other options.

If you are planning to buy an unencumbered home then make sure that you find out what kind of mortgage you qualify for. There are different types of mortgages available depending on how much equity you have in your current home. If you own a second home then you can use this as collateral for a mortgage. However, if you already own a home then you may be better off using cash rather than borrowing against it. This way you will avoid paying interest on the mortgage.


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What is an unencumbered mortgage?

In the finance world, the term ‘unencumbered’ is used for the property that has no loan or mortgage to pay on it. Unencumbered remortgages are also named mortgage-free properties. There are many reasons why homeowners decided to remortgage such properties. Some people choose to remortgage because they want to reduce their overall mortgage repayments. Others prefer to remortgage so that they can take advantage of lower rates offered by lenders.


Unencumbered mortgage lenders

If you are a homeowner of a mortgage-free property, you can get access to various attractive mortgage deals from different lenders. Some of the mortgage lenders will consider such properties as new purchases instead of remortgaging. This won’t affect your mortgage application in any way. Still, it’s always better to get a good understanding of the mortgage process before starting the application. We got a lot of queries from people asking about the meaning of the term remortgaging of an unencumbered property. A remortgage is defined as replacing an existing mortgage on a property with a new one. In case you don’t know, there are two ways of doing it: either you can apply for a new mortgage on the same property or you can transfer the ownership of the property to another person. There are many specialist lenders who can help you to get a loan on a mortgage-free property, you may need to contact an expert remortgage broker.


Capital raising on a mortgage-free property

Mortgage-free properties are great for people who want to save money. You may think it’s smart to take out a mortgage, but don’t forget about the costs involved. Risk: Mortgages have some element of risk attached. You should be careful when you take on a mortgage. Even though you might have good financial stability, there is always a chance that you won’t be able to pay back the loan. Mortgage advisers can help you assess these risks. Debt consolidation is a great idea if you’re having trouble paying off debts. You should always talk to a debt expert first. A mortgage adviser can help you choose the right type of loan. They can also explain all the benefits and drawbacks of each option. It’s important to understand that not everyone qualifies for a mortgage. The best thing to do is to speak to a professional lender.


I own my house outright can I remortgage?

Yes, you can get an unencumbered remortgage and it is no different than any other type of mortgage.  Mortgage Lenders will do the affordability check on your mortgage application. Lenders can ask for your monthly income, credit scores, bank statements etc. Some lenders may also ask for your employement status, age etc. If you meet the criteria, then you can start applying for a mortgage. It is always better to contact a financial adviser before starting your application. To find out more information about unencumbered mortgages, visit our website.


Unencumbered remortgage on a property in bad condition

Investors often purchase houses outright with cash, hoping to make a profit off them later. They also might be willing to spend money on renovating a house to make it more appealing to potential buyers. Or, if you’re renting out your property, you could be looking to invest some money into making improvements that will increase the value of your rental unit. But what if you already own a home that needs repairs? That’s where an unencumbered remittance comes in handy. An unencumbered remittance is a kind of investment that lets you borrow against the equity* in your current home without taking on a second mortgage. Your lender will likely require that you put down at least 20% of the total cost of the project. However, this amount can vary depending on the size of your home and the scope of the work required. For example, you might only need to put down 10% if you’re planning to fix up a small bathroom or kitchen area. On the other hand, you might need to put down 30% if you plan to completely gut a room or add on an addition. Once you’ve completed the work, you’ll be left with the rest of the funds needed to pay off your existing mortgage. Equity release will reduce the value of your estate and can affect your eligibility for means-tested benefits.


Unencumbered remortgage for investment

Investors usually use cash when buying properties because they need to do renovations quickly. Their goal is to sell the property quickly after making improvements. In order to do this, they carry out renovations to make the property more attractive to buyers. Buying a property outright with money makes it unencumbered. If you want to rent out the house, you might benefit from a remortgaging. Speak to us if you need a remortgage quickly. We’ll help you find a specialist lender who might be able to accommodate your requirements.


An unencumbered mortgage with bad credit

If someone has a bad credit history, it could affect the unencumbered mortgage application. Mainstream lenders may not approve your mortgage application because of adverse credit. But there are some banks which can approve such unencumbered remortgage even with the bad credit. In this case, specialist bad credit mortgage brokers could help you in securing such mortgages. At needingadvice.co.uk, we can help you in securing such bad credit mortgages. Feel free to contact us.


Remortgage an inherited property

Inherited properties are hard to deal with because there are many people involved who may be affected by the sale or purchase. A solicitor must act in your best interest during the transfer of ownership. If the property is mortgaged, you may want to remortgage to release capital. This allows you to use the money raised to buy a new house while renting out the inherited property. In spite of the restrictions, specialists at Needingadvice.co.uk Ltd are able to connect you with lenders that are willing to consider these kinds of circumstances when making decisions about mortgages. You may want to make an inquiry today and one of our advisors will be in touch. Our team will be able to answer any questions you may have and get the ball rolling on your application to secure a mortgage.


FAQs – Mortgage Unencumbered Property

What is an unencumbered mortgage?

It is a type of remortgage that doesn’t involve borrowing against the value of your home. Instead, you use the money you raise through selling your property to fund the renovation. The remaining balance is then paid back over time using the proceeds from the sale of the property.


What are the factors mortgage lenders will consider for such mortgages?

Mortgage lenders will check your affordability by analysing factors such as employment status, income proof, adverse credit issues, late payments of credit card or overdraft etc. They will also look at the value of the property and the extent of the proposed renovations. If you are interested, you can contact a market mortgage broker for financial advice.


How much does it cost to apply for an unencumbered mortgage loan?

The costs associated with applying for an unencumbered remortgage depend on the amount borrowed. It’s important to note that the total amount you borrow should not exceed 80% of the current market value of the property.


Can I pay off my existing mortgage before applying for an unencumbered mortgage?

Yes, you can. However, you should bear in mind that the interest rate charged on the new mortgage will be higher than what you’re paying now. Also, the term of the new mortgage will be shorter. It is better to contact for mortgage advice from our business finance broker team.


Can I get a residential mortgage on the unencumbered property?

Yes, but only if you meet certain conditions. For example, the property needs to be owner-occupied and you need to be able to prove that you’ll occupy the property yourself. There are other requirements related to the financial situation too such as outstanding debts, financial commitment employement status etc. To find out more information, feel free to contact our team.