If you have paid off a good chunk of your mortgage or the value of your house has gone up, you may have built up a lot of equity in the property. Remortgaging to release equity could be a way to availableness more income perhaps for home renovation, repaying short-term debts or helping with your children’s education. If you are considering this, you will need to weigh up such benefits against the longer-terms costs of doing so, and also look to see if there are any better-value alternatives.

Letter.B. It is not the same as collateral discharge because the a resource off old-age income. Discover more about later years security release.

What exactly is security?

Their guarantee ‘s the part of your residence which you own outright. It is the difference in extent remaining to invest on the home loan and the property’s market price.

Equity is related to financing-to-really worth (LTV) proportion, which is the difference in the mortgage kept to expend and you can the new property’s value. Eg, if you purchase a property to own ?two hundred,000 that have a great ?150,100 financial and you may a great ?fifty,one hundred thousand deposit, the fresh LTV is actually 75 % plus equity was ?50,000 (how big is your deposit).

Each other LTV and your guarantee will change over day.