How to Release the Equity in Your House

Monopoly house

House prices continue on an upward trend and predictions from HBOS, RICS, the property website Rightmove and estate agents Savills and Knight Frank suggest rises of around 6 or 7% for 2007. The UK national house price statistics for the early months of 2007 are supporting this optimism with the Halifax House Price Index for February showing a monthly rise of 1.80% and that of the Nationwide House Price Index showing an increase of 0.70%.

So how can you benefit from an increase in value in your property?

Clearly it may help if you decide to move house, particularly if you are downsizing. The equity you have in your home, that is the difference between the current value of your property and the amount of any outstanding mortgage, could though perhaps be converted into cash and used more immediately, to help you save money or enable you to undertake that longed for dream; the luxury holiday or some home improvements.

If you do not have an outstanding mortgage then taking out a mortgage may be an option to release some money. If you do have an existing mortgage, depending on your own individual circumstances, including the type of your existing mortgage and any early repayment charges that apply, it may be beneficial for you to remortgage. This could be done with your existing provider or as is more often the case with another provider.

Whether you require a mortgage or remortgage there are many factors to take into account to make sure you get the best possible deal available. MoneyHighStreet has teamed up with the experts at CK Financial Services to ensure our readers understand all the options available to them and that they get the very best mortgage and remortgage deals possible.

A Home Equity loan is another option to release money based on your home equity. This is a second loan secured on your home, commonly called a second mortgage. Depending on your circumstances, home equity loan interest rates can be attractively low.

Some home equity lenders will allow you to borrow up to 125% of the equity amount. You can undertake research yourself to understand about equity lending, but this can be a daunting subject so to speed up the process and ensure you have all the relevant information, why not link up with experts and get a free, no obligation quote now.

It is important to be aware that Equity Release Plans are completely different from the equity home loans as described above. These equity release plans, also known as home reversion or home income plans, are schemes which basically lend you cash in return for a share in the proceeds from the sale of your home when you die.

There are many such plans available and depending on your needs and circumstances they can offer a lump sum of money or a regular income, supplementing your pension for example. These plans can be complicated and over the last few years there has been some negative publicity around them.

There are of course advantages to the plans and it is vital that you gain a clear understanding of what is on offer and understand whether they are the righ solution to meet your needs.

So if you have equity in your home then there are a variety of ways you can release this and turn it into cash to use today. Within reason you can use the cash for whatever purpose you want. Consider your options carefully and consult with the experts to ensure you end up with the best solution for you.

Find the best Equity release mortgage or loan now

Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.