SMI Loan - Does it affect releasing equity or further borrowing against home
Hi, does anyone know if you have an SMI loan does it affect your ability to release equity from your property in the future? I can't afford to pay a financial advisor. I'm with Barclays. I'm working and have UC top up, my ex is dragging me through the family court again for the 6th time which is already at £21k owing the solicitor and potentially the same again... I have equity in my house but the sums don't currently add up to release it, as I also have a £20k debt on credit cards that I have been juggling for the last 3 years as I've already paid out £35k on previous hearings. I need a couple of years to stabilise, pay off the cards, and then want to look at releasing equity to pay off solicitor. The SMI loan would not be huge and I would look to paying off a part each month too, its just all about timing, credit history and managing the situation. Leaving an abusive ex is very expensive. I have no savings left and noone I can borrow from but do have equity in my home. I don't want to sell and uproot my children who have already been through a nightmare, current serious safeguarding issues ongoing. One has been suicidal. They do not need the upheaval and it would mean moving schools and cities as where we live is too expensive to either buy again or rent.
Does that make sense? I'm wondering if it would just be that if I release equity by remortgaging, (not the over 55 scheme) I would first be required to pay off the SMI loan, from it? Or would having the SMI loan prevent any further borrowing against the house? Thanks.