Remortgaging to release equity
Do you love your home yet find yourself dreaming about a brand new kitchen, craving for a garden office so you can work peacefully at home, or in need of an ensuite as the queue for the bathroom is too long in the morning? Perhaps, you’re longing for a landscaped garden or simply require more space for your growing family.
Often we find our customers need to make large home renovations, repairs and improvements to their existing property, but don’t know where to find the extra cash to fund these projects. We’re here to help, we’ve compiled a guide on understanding how you can release equity from your home to make necessary repairs and improvements.
If you’re considering home improvements but are short on savings, releasing equity from your home may be a viable option. At Newhomes, we’re here to provide guidance on what it involves, the methods to achieve it, and the potential risks.
Releasing equity from your mortgage refers to a process where you access the value that has built up in your property over time, and convert it into cash without selling the property. Equity release is generally available to homeowners who have paid off some or all of their mortgage or have a significant amount of equity in their property.
Remortgaging to release equity for home improvements
This involves refinancing your existing mortgage, either with your current lender or a new one, and borrowing additional funds against the equity in your property. This can allow you to access a lump sum of money by switching to a new mortgage product.
At Newhomes, we can guide you through the options available when borrowing against your home equity.
Releasing Equity for New Builds
Releasing equity for home improvements is not just limited to homeowners with existing properties. It can also be a good option for those with new builds who want to make improvements to their home. Releasing equity can provide the funds needed for these improvements, allowing homeowners to personalise and enhance their new build property without having to dip into their savings.
Additionally, home improvements can add value to a new build property, making it a wise investment for the future.
Considerations and risks
While releasing equity can be a great way to fund home improvements, it’s important to understand the risks and consider all the options available. At Newhomes, we can help you weigh the potential risks and rewards of releasing equity and guide you towards the best option for your needs and circumstances.
Whether you have an existing property or a new build, releasing equity from your home can be a viable option to fund home improvements and repairs. With guidance from an expert mortgage advisor at Newhomes, we can help you navigate the process and make an informed decision.
Releasing Equity for Home Improvements FAQs
Home equity refers to the value of your home that you own without any debt attached.
Yes, if you have home equity, you may be able to use it to access credit and fund home improvements and repairs.
To release equity to renovate, you must remortgage to free up some of the equity.
There are multiple credit options available when borrowing against your home equity, including remortgaging.
Remortgaging involves switching from your existing mortgage to another mortgage either with the same lender or moving to a new lender.
Yes, releasing equity can be a good option for those with new builds who want to make improvements to their home and add value to the property.
It’s important to understand the risks and consider all the options available. As a mortgage broker, we can help you find the best option for your needs and circumstances.