How can i release money from my house

We aim to make our website as accessible as possible. However if you use a screen reader and require debt advice you may find it easier to phone us instead. Freephone including all mobiles. Home Debt information Debt solutions. Releasing equity from your home. How does equity release work? What can you use equity release for? Is equity release right for you?

Talk to the experts Book a no-obligation consultation today Book now. Email your homebuying and borrowing worries to Virginia Wallis at virginia. I own my house and need cash. Should I raise it with equity release? I am a pensioner and get lots of brocures about equity release, but I don't really understand the ramifications. Reader needs to find out about equity release for her house. Photograph: Alamy. AS A Equity release is a way of cashing in some of the value of your home while still having the right to live there.

Topics Equity release Ask the experts: homebuying Property Mortgages features. In other words, you pay off the underlying mortgage debt in order to reduce the amount of money you're borrowing from the bank or building society.

You can work out how much equity you have by subtracting your remaining mortgage debt from the actual value of your home. If you were having your home valued by your mortgage company for borrowing purposes, the value might not be quite as high as estimates from property websites. It's not uncommon for homeowners to borrow against their equity by remortgaging to get a cash lump sum, often to pay for home improvements that can add value. This is known as remortgaging to release equity, or remortgage equity release.

If you want to remortgage to release equity you will need to contact your current mortgage company or remortgage with a new lender in order to release the cash. With mortgage rates relatively low, remortgaging may seem like the cheapest way to borrow large sums of money. But borrowing more means paying more interest overall, so is it a better idea than a short-term loan?

The most obvious way to access your equity is by selling your home. Typically, your equity is put towards a deposit to buy a new home.

So make sure you weigh up the pros and cons before taking this step. If your equity has increased, you can use it as larger deposit and secure lower mortgage rates, or maybe even buy a home outright.

If you 'downsize' and move into a lower value home, you will have freed up your equity into cash. If you don't want to move home or downsize, you can remortgage to borrow against the value contained in your equity. This works by taking out a new mortgage that is larger than your existing mortgage. Because of the increase in value of the home, your loan to value ratio LTV has still dropped, but you're borrowing and paying interest on a higher amount.

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