Remortgage To Release Equity

Can you remortgage to release equity? Can I remortgage early to release equity?

Yes, you certainly can. You can either remortgage or apply for additional borrowing with your current lender. Your advisor will let you know the best way to go about it.

If you’re remortgaging early before your current rate comes to an end, there may be costs to move away to a different lender or come out of that product early.

Your advisor will check it all over for you and make sure it’s affordable. If you do apply for additional borrowing, whether that’s with the same lender or a different one, there are always new affordability checks and perhaps even a new valuation of the property.

We would let you know of any fees associated with moving to a different lender, and give you all the advice around it.

What are the reasons for remortgaging to release equity?

There are many reasons why people approach us to release equity. I’ll give you a few examples.

You might raise money for home improvements, to buy an additional property or to gift to family members and help them buy a home. If you’ve got a lot of debts outstanding, such as credit cards and loans, you can look to consolidate those.

Your advisor will give you advice on whether it’s actually cost effective to do that – because you’re essentially paying off one debt with another. It’s certainly something you can look at.

Some people still have Help to Buy equity loans, which aren’t available anymore but helped them purchase their home. You could remortgage to raise funds to pay that off.

If you’ve got a shared ownership property, where you own a share and not the whole home outright, you could borrow more money to buy a bigger share.

It might help you buy a car, or fund a divorce settlement. If you’re self-employed and you’re trying to inject some money into your business, you could raise capital to help out with that.

Some people use equity to pay a tax bill or even buy an overseas holiday home. That isn’t so common these days, but it might sound attractive. There are many different reasons you can remortgage to release equity from your property.

How do I remortgage to release equity in my property?

It comes down to your circumstances and what’s cost effective for you. Your advisor will let you know. You can remortgage to a new lender, moving your mortgage and borrowing additional monies on top, or, you could look at staying with your current lender.

This is especially useful if you’re tied into a rate with early repayment charges for moving away. You could look at a ‘further advance’ with that lender and not then incurring those additional costs.

There’ll be brand new underwriting, new affordability checks and perhaps a new valuation. Your advisor will run through all of that beforehand to make sure it’s affordable before applying.

Other charges may be involved if you are moving away to a different lender, and of course, your advisor will make you aware of all of that.

The process can seem stressful when you’re moving mortgages, and that’s why your advisor is there to help you. At Asset Harbour, we hold your hand and make it as seamless as possible. We take all the stress out of your hands.

I certainly wouldn’t want anyone thinking that this isn’t an option for them because they don’t want the stress. That’s what your advisor is here for. We advise you on all the steps throughout and take away the hassle.