Mortgage Equity

The equity in person’s house is simply the excess of its value over the amount of any mortgage or loan secured upon it. For example, a property worth £100,000 with an outstanding mortgage of £75,000 would mean that the equity in the property would add up to £25,000

With the substantial rises in property value in recent times, more and more individuals have found that they have a vast amount of money tied up in their homes.

 

When it comes to a remortgage, this can offer borrowers an opportunity to raise money on the property by utilising the available equity. For example, a borrower with a property value of £75,000 and an outstanding mortgage of £42,000, who is wishing to borrow up to 75% of the properties value, would be calculated as follows:

 

1. 75% of £75,000 = £56,250
2. £56,250 - £42,000 = Available equity of £14,250

 

If you have available mortgage equity stored in your home then there is a very high chance that you could access it through a remortgage. You can borrow money in this way for any purpose, including consolidating existing debts, carrying out home improvements, buying a new car or taking a family holiday.

 

Even if you have a poor credit rating, or have difficulty proving your income, we can still help!

All illustrations are provided completely free of charge and with absolutely no obligation.