Remortgage to Release Equity

Equity is the difference between what you owe on your mortgage and what your home is currently worth. If you owe £150,000 on your mortgage and your home is worth £200,000, you have £50,000 in equity.

When you release equity, you are releasing a share of your home and turning it into cash. You can use this equity to fund home improvements, pay off unsecured debts, put down a deposit on another house or gift to your children.

To get a rough idea of how much equity you own, you will need to work out how much your house is worth.

You can get an estate agent to work this out for you or just look at similar housing prices in the area.

Take this total and subtract your remaining mortgage amount from it; this will give you a estimate to how much equity you currently have.

Yes, you can if you have enough equity within your house to pay back the loan. Depending on the amount of equity you own, you may not have to take all of the equity out to repay the loan.

It is always best to seek professional advice before securing any debts against your home and you may end up paying back more interest overall.

You should think carefully before securing other debts against your home. By adding your unsecured debts to your mortgage, which is secured on your home, you are potentially putting your home at risk if you cannot make the required repayments.

Although the total monthly cost of servicing your debt may have reduced, the total cost of repayment may still have risen as the term of your mortgage is longer than it may have taken to repay the debts originally.

The remortgage process can usually take four to eight weeks to complete.

Ideally, when you are remortgaging to release equity, you want to plan your remortgage at least 3 months ahead.

This is where coming to a mortgage broker can prove beneficial, as we'll make sure you're prepared as you can be and will work hard to help you achieve mortgage success.