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Release equity from your property by remortgaging

Releasing equity from your own property is the best way to get the cash and fulfil all your other financial needs. It is cheaper than any other form of unsecured loan. You can use this cash in any way you like, for example paying your debts, paying your child’s school or college fees, spending for home improvements or paying your credit card bills.

The equity in your home means the difference between the value of your home and the pending mortgage value. For instance if the value of your home is £250K, your pending mortgage is £150K and your equity in your home is £100K. You can borrow and the equivalent funds as you have in equity.  You do need to remember that your monthly repayment will go up and the interest rate may change to the current market rate.

If you opt for second charge mortgage to release your equity then the new provider may charge you a higher rate of interest than your current lender. They will also register for a legal charge on your property after your first lender.

All the other processes for borrowing money will be the same as the normal mortgage process; you have to submit all the required documents as per the normal lending process which includes proof of income, property documents, monthly expenses etc.

However, if you have built up some equity in the property then you could actually release some of it when remortgaging, which you can then spend on whatever project you have in mind.

APPLY FOR A REMORTGAGE TO RELEASE EQUITY

Did you know that by remortgaging against the equity in your property you could cash in on your property’s increased value?

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Frequently Ask Questions

Equity is the difference between the actual market price of a property and the pending mortgage value. For instance, if your home has valued at £90,000.00 and your pending mortgage value is £55,000.00 then the equity value is £35,000.00 and the Loan to Value (LTV) is 61.1%, which is the percentage of pending mortgage to the total value of the property.

In order to remortgage your current property you must have paid off some of the original loan, for example if you own a house and its value is £100k and you made an initial payment of £10K and took a loan for £90k, but a couple of years later, you have only repaid £2k and the value of your house has increased by £1k this means that the value of the house is £110k and your pending mortgage is £70k. At this point the equity value is the difference between the value of your home and a pending mortgage which in the case of the above example will be £40k.

So, you can remortgage your home to get the additional £40k and if remortgaging to release the equity, you can remortgage part of the equity as well, which means you can borrow £20k or £30k of £40k

You may have paid more than half of the mortgage amount on your home and might want to buy a new house and are considering a remortgage to do this; before this can happen we need to confirm whether you are remortgaging to buy a house for your extended family or kids or if you are buying as an investment or to rent out to tenants. If you want it for your kids or extended family then you can remortgage your current property to pay the up-front payment or to pay some initial expenses.

However, if you are planning to buy for investment purposes and you want to let it out to tenants than you can’t remortgage your residential property as this would be considered a commercial property; a residential property cannot be remortgaged for commercial purposes.

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Remortgage to release equity, all you need to do is provide your details in application form below







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