Capital Raising allows homeowners to remortgage a property at a greater value than the initial purchasing price. Many people participate in Capital Raising in order to raise funds for different purposes, such as renovation, debt consolidation or purchasing a new vehicle.
The total amount of capital that is raised will depend on how much money is left after the first loan is repaid, which will be deducted by a new loan.
Homeowners should be fully aware of the risks associated with property remortgaging. For example, in the worst-case scenario, their home could be repossessed if they are unable to continue their mortgage repayments.
Furthermore, each lender has different rules for Capital Raising and it is the owner's responsibility to research the terms and conditions of their lending agreement in the first instance.