The Ultimate Guide to Releasing Equity
To remortgage and release equity means to release some of the value in your house if you need cash, without having to sell up. It’s a great option for those who are looking to move, or for anyone who needs money quickly. The process can take as little as 10 minutes and doesn’t cost anything upfront!
First, you’ll need to work out how much you want to release from your property.
You can do this by working out what the mortgage is on your house (the current amount of money that needs paying) and comparing it with the value of your property in a remortgage calculator tool. The difference between these two figures will give you an indication as to whether or not releasing equity could be right for you, so make sure you take some time before deciding if this is something worth considering.
Next, we’ll look at what steps are involved in remortgaging and releasing equity:
Find out who owns the loan on your home – either yourself through self-certification mortgages or someone else via a bank/lender such as a building society, for example.
Get in touch with your lender and discuss the remortgage process they offer – you’ll need to be able to show them that you can afford the lump sum repayments on top of any other debts you have, but don’t worry if this is something new because most lenders will do a credit check for free!
If everything looks good then it’s time to apply formally by filling out an application form and providing proof of identity such as bank statements or utility bills etc. You may also want to request a valuation too so there are no nasty surprises later down the line when you come back to sell up.