Remortgage to Release Equity

If you are considering a remortgage to release equity, a good place to start is by having an idea of the value of your property. You can look at both recently sold prices in your area for similar sized properties and see what’s for sale around you.

Another thing for you to consider when thinking about a remortgage to release equity is the balance of an existing mortgage or loan secured against your property. Our mortgage advisor team will help you with this one.

When doing a remortgage to release equity, how much you can release will depend on your property value and any outstanding mortgage or loan secured against the property.

Also, your affordability, age and credit score will be considered by the new mortgage lender.

Don’t worry too much about the above as our mortgage advisor team will help and guide you through the whole process.

Generally, the more equity that you have, the more you’ll most likely be able to release.

A remortgage to release equity is also available for our older clients aged 50+. The mortgage world has been brilliant for innovation in this later life lending area over the last few years and a lot of products are now available to help.

Older customers are generally wanting to release equity help family, pay off debts, pay for care or to supplement pension income.

If you are aged 50 and above and are looking for a remortgage to release equity or for a lifetime mortgage/equity release product, then please visit our mortgages for the over 50’s page.

Our specialist later life mortgage advice team will be able to answer all your questions. You’ll be surprised what mortgage products are now available to older borrowers, even with a poor credit score.

If you are considering a remortgage to release equity and you’re in the middle of a fixed-rate deal, it’s important to seek great mortgage advice so you know your options.

Your mortgage advisor will consider you’re the rate and time left with your current mortgage lender and any early redemption charges.

Your mortgage recommendation will include exploring any options that are available with your current lender such as a further advance, moving the full mortgage plus any new borrowing to a new lender, or a second mortgage (often called a secured loan or second charge) on your property.

As part of our mortgage advice process, it’s important that we consider all the above options, and that you understand the pros and cons of each route. We’ll recommend the most cost-effective way forward for you.

Our mortgage advisor team will run through all the options with you and recommend the best remortgage product for you. Your mortgage advisor will run through your interest rate, whether it's fixed or variable, and the length of the mortgage term so you have a full understanding of your new mortgage.

If you are on much lower interest rates or your home has significantly increased in value, this may counteract these costs.

It’s usually harder and you’ll need a great mortgage advisor on your side, however, it is possible to remortgage to release equity with bad credit. Bad credit such as a ccj, default, missed payments or simply a low credit score are usually hurdles that we can overcome.

Generally, the more equity that you have in your property that you are looking to remortgage to release equity the easier this is

The fees associated with a remortgage to release equity, including arrangement fees, valuation fees, legal fees, and early repayment charges.

Your mortgage advisor will run through all these with you.

Depending on why you are looking to remortgage to release equity your monthly financial commitments will either increase or decrease.

For example, if we are remortgaging to repay credit cards and personal loans, you might save money per month and have just one higher mortgage payment.

On the other hand, if we are doing a remortgage to release equity for a gift to family or home improvements, your mortgage payment is likely to increase.

If you are aged 65+ and are wanting to explore your lifetime mortgage/equity release plan options, some of these plans allow the interest to roll up so that no monthly payment is required.

Read more about equity release and mortgages for over 60s.

As mentioned above, seeking great mortgage advice is vital in this area. It’s very complex and your mortgage advisor will need to consider which product/s are best for you, I.e., a further advance, a remortgage, a second charge/secured loan or, for older clients an equity release/lifetime mortgage.

If you are using a remortgage to release equity to consolidate unsecured debts such as credit cards and personal loans, these will now become secured on your home. This means that if you ever missed mortgage payments, your property could be repossessed by your lender, and you could end up losing your home.

Also, a remortgage for debt consolidation, is usually spread over a longer term than a personal loan therefore the amount of interest you pay over the period will likely be more.

These are just some of the risks involved, it’s our job as trusted mortgage advice experts to run through all the risks involved based on your personal situation.

Yes, you can remortgage to release equity if you’re self-employed, no problem. Whether you are a sole trader, a partnership, or a limited company owner, with one years trading you’ll have remortgage to release equity options.

If you are aged 55+, receiving pension income and looking to release equity from your property there will be several options for you to consider.

These options will allow you to take equity from your home using just your pension income, there will be products that do not require any monthly payment from you also. The interest rolls up with these equity release mortgage types.

Our specialist later life mortgage advice team will be able to answer all your questions. You’ll be surprised what mortgage products are now available to older borrowers, even with a poor credit score.

As with any mortgage, a remortgage to release equity is a long-term commitment and should not be used as short-term borrowing. There are other products available such as bridging finance for these situations.

Your mortgage advisor will recommend a mortgage product for you based on your individual circumstances. As a rule, if you decide to go for peace of mind with a fixed rate, these usually come with early redemption charges for the duration of the fixed rate term, I.e., 2, 3 or 5 years.

Things like downsizing your property to release funds or unsecured credit products such as credit cards and/or personal loans should be considered to see if these meet your goals.

If you have explored the above, as part of our mortgage advice process, products such as a further advance from your existing provider or a secured loan/second charge will be considered as an alternative to a remortgage to release equity for you.

Your free consultation with a mortgage broker, this will take about 25 minutes and will include basic personal information like name, address, salary, and any existing credit/mortgage details etc. This information will allow your mortgage advisor to answer all your questions accurately.

If you like what you hear and are happy to proceed with us, you’ll need to provide standard documents such as 3 months proof of earnings, ID and 3 months bank statements etc. It’s normal for other ad-hoc documents may be requested during the application process; this will vary by lender.

The time is takes to remortgage to release equity through to completion can vary greatly by lender and which product suits you, however, as a general guide, the full process takes about 3 months until you receive your cash.

Our mortgage advice team aim to have secured you a mortgage offer within approximately 2 weeks; the rest of the process is in the hands of your conveyancer.