The specialist lender of Nationwide Building Society has increased its additional borrowing limits from £50,000, or 60 per cent LTV, to a maximum of £70,000 over the amount of the existing mortgage, or 75 per cent LTV, whichever is the greater.
The overall maximum amount for the new mortgage is 85 per cent of the value of the property.
Capital raising loans are traditionally used for a variety of purposes, including home improvements, business capital, purchase of a second home, car purchase or to pay for weddings and education.
Charles Reed, managing director of UCB Home Loans, said: “Capital raising via a mortgage is a relatively easy and inexpensive way to fund new expenditure or pay off existing debts. This change will make it easier for those borrowers who have equity and available income to raise funds.”
UCB attribute the demand for capital raising loans, based on mortgage equity, to a combination of house price increases and falling mortgage interest rates.
