Remortgaging to release equity
If the value of your home has increased since you took out your mortgage, then you may want to consider releasing some equity via a remortgage. This basically involves siphoning off some cash from the portion of your property that is mortgage-free thanks to your monthly repayments.
In recent years this has been a popular reason for remortgaging, given rocketing UK property prices over the past decade. However, as house price growth has now started to slow, you should weigh up the pros and cons carefully before choosing to remortgage to release equity. What impact will topping up your homeloan have on the equity left in your home if the value falls in the near future? Could you be left with hardly any equity left in your home or even owing more than the value?
