How to Remortgage to Release Equity

Remortgaging to release equity from your property can be a smart financial move if you need access to cash for home improvements, debt consolidation, or other expenses. Here’s how to remortgage to release equity in the UK.

Are you looking for more information? Get in touch with Peak Mortgages today. 

How to remortgage to release equity: 5 steps

1. Check your equity 

The first step is to check how much equity you have in your property. This is the difference between the value of your property and the outstanding mortgage balance. You can do this by getting a valuation of your property or using an online tool. 

1. Find a suitable remortgage deal 

Once you know how much equity you have, you can start looking for a remortgage deal that suits your needs. Consider the interest rate, fees, and terms of each deal and choose the one that offers the best value. A great mortgage broker can make this much easier.

1. Apply for the remortgage

Next, you’ll need to apply for the remortgage. This will involve filling out an application form and providing documentation such as proof of income, bank statements, and ID. Your lender will also conduct a valuation of your property to determine its current value.

1. Complete the legal work

Once your application has been approved, you’ll need to complete the legal work. This will involve hiring a conveyancer or solicitor to handle the remortgage. They will review the terms of the new mortgage deal, conduct searches, and prepare the necessary legal documents.

1. Receive the funds

 Once the legal work is complete, you’ll need to sign the remortgage deed and any other relevant documents. Your lender will then release the funds, and the remortgage will be complete.

It’s worth noting that remortgaging to release equity can come with higher interest rates and fees than a regular remortgage, so it’s important to do your research and make sure it’s the right option for you. Additionally, releasing equity from your property can also impact your ability to get credit in the future, so it’s important to consider the long-term implications before proceeding.

In summary, remortgaging to release equity can be a useful way to access cash, but it’s important to take the time to find a suitable deal, complete the legal work, and consider the potential long-term impact on your finances.

We hope we answered all of your questions for ’How to Remortgage to Release Equity’. Are you looking for more information? Get in touch with Peak Mortgages today.