For many homeowners, a property is more than just somewhere to live, it’s also a source of financial value. When you remortgage, one option is to release equity, which can give you access to some of that value without selling your home.
What Is Equity?
Equity is the difference between your home’s current value and the amount left on your mortgage. For example, if your home is worth more than you owe, you may be able to release some of that difference when you remortgage.
Releasing equity can provide funds for a range of needs, such as home improvements or consolidating other borrowing. However, it’s important to remember that increasing your mortgage may also increase your repayments and the overall cost over time.
Moving Forward with Remortgaging
If you are considering releasing equity, it’s helpful to review your current mortgage deal, your property’s value, and what you need the funds for. Speaking with a broker can help you understand whether this is a suitable option for your circumstances.
At Muuvin Mortgages & Protection, we offer no-obligation calls where you can explore remortgage choices and learn more about how equity works.
Can I release equity if I’ve only recently bought my home?
It may be more limited, as equity usually builds over time as your property value grows or your mortgage balance reduces.
Do I have to release equity when I remortgage?
No. You can remortgage simply to switch to a new deal without borrowing extra.
Will releasing equity affect my monthly payments?
Yes, increasing your mortgage generally increases your monthly repayments.
Disclaimer
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is for general information only and should not be taken as advice. Mortgage applications are subject to status and lender criteria. The information provided is correct as of the date it was posted and may be subject to change without notice.
