Remortgaging and equity release

Remortgaging - there are already a couple of articles that look at the main reasons for doing this. And independently we have also looked at equity release and discussed again the two main forms of equity release and who tends to use that option, and who they are best suited for.

The two can be combined, in the sense that the reason some people remortgage is to release equity, although it is important to note that this is *not* an equity release as that term is usually used (refer to the article on equity release to find out more) but rather is a reason for remortgaging: to release equity.

Hopefully that is not too confusing!

Let's say for instance that you wanted to help your children buy their own property, but that all your money is locked up in the home. This is the case for many who don't have lots of savings, but who have enjoyed a rise in their house price of around Ł100,000 in the last 5 - 10 years. If this applies to you, then it means your wealth is locked up in the bricks and mortars.

So if you wanted to give your kids a lump sum to help them with their deposit or first home, then it might have crossed your mind to remortgage to release some money and therefore provide that financial help to the next generation.

Or indeed perhaps you just want some money for a significant purchase, such as a new car or even to finance a new property but without wishing to sell your current one. Again some people do release equity in their home via a remortgage to do this sort of thing.

But it should always come with a big caveat that it is risky. As we all know if you are unable to meet the repayments, which of course if you remortgage and release equity will be going up, then you can put your home at risk, so you should always think very carefully about this option.

Buying Property

Mortgages

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Tools and Resources

Remortgaging and equity release

House Prices