Raising funds

Using your home’s equity to raise funds

Equity is the difference between your property’s value and the borrowing secured against it. Some homeowners can borrow more against their property, but the amount available depends on lender criteria, property value, existing borrowing, income and affordability. Having equity does not guarantee that you can borrow.

Remortgaging to release equity

A remortgage replaces your current mortgage with a new one. Borrowing more than your outstanding balance may release funds for an acceptable purpose. We consider the cost of replacing your current deal, including any early repayment charge, product fees and the total interest over the new term.

Keeping your current mortgage in place

A further advance from your existing lender or a second charge mortgage may be alternatives to a full remortgage. A second charge creates a separate secured loan and repayment commitment. We compare the overall costs and conditions rather than assuming that keeping your current deal is always cheaper.

What could the funds be used for?

Home improvements and other planned expenses may be acceptable, depending on the lender. Tell us how much you need and what it is for so we can explore suitable options. If your aim is to repay existing debts, our dedicated debt consolidation guidance explains the additional risks and alternatives.

Borrowing against your home is not later-life equity release

Remortgaging to release equity usually means a standard mortgage with regular repayments. It is not the same as a lifetime mortgage or home reversion plan, often called equity release. This page covers standard mortgage borrowing and second charges, not advice on those later-life products.

A friendly conversation about your plans

We review your current mortgage, income, outgoings, property and intended use of the funds. Bring your latest mortgage statement, details of any early repayment charge and an estimate of the amount you need. We explain suitable options, fees, risks and total repayment costs before you decide.

Questions about raising funds