How to Remortgage for Plenty of Equity
There are many reasons why people want to release equity from their property. For some, it might be because they have an expensive hobby that requires a lot of money and purchasing power. Others need the cash for medical expenses or education costs. Whatever your reason is, you should know what remortgaging is and how it can help you. Find all the information about remortgaging to release equity so that you can start living the dream – financial independence!
Remortgaging is simply a new mortgage agreement with your current property and lender. You either pay off the previous loan or refinance it by taking out a larger loan for more money, but at a lower interest rate (or both). The difference between these two options depends on how long you’d like to keep your home, what kind of debt consolidation deal you can get from lenders, etc. Let’s take an example: let’s say that there are three different properties that are in need of equity release – one owner needs £100k to go towards their medical expenses (£400/month), another wants £50k cashback because they’ve been saving up for years (£300/month) and the final person just wanted to get rid of their expensive hobby (£150/month). This means that all three people can retain ownership in their homes and use the cash to help themselves.
Remortgaging as a debt consolidation loan is also very helpful because you’ll likely have a lower interest rate than what you’re paying now, which will translate into huge savings over time! Additionally, if your property’s value has gone up since you bought it (which many do), then remortgaging allows you to take out equity from that increased valuation at an even better interest rate and monthly payment – this is known as “cashback” or releasing money through capital gains.