As one of the largest financial consultants in the UK we consider it our responsibility to ensure that our customers have access to the all the information they need in order to make educated decisions about their property and financial options.
In this article we look at equity and remortgaging, so if you are a homeowner who is coming to the end of their fixed rate make sure you get in touch with us and book an appointment or contact us on 0330 3530325.
Equity is the value of the portion of your property that you own – so if your property is worth £500,000 and you have a mortgage of £300,000 your equity is the remaining £200,000.
Homeowners build up the amount of equity they have in their property in two ways. The first is that while you own the property it increases in value as a result of other economic events which impact the value of property in the UK or your locale. This means that your property is worth more than when you bought it but your loan amount is still the same. The second way is that the property value remains the same and you pay down the mortgage over a period of years.
Things to think about
Remortgaging in order to release cash from your property shouldn’t be undertaken on a whim. It is important to do the necessary calculations and work out the true cost of a larger mortgage against the value of your property. Make sure you speak to one of our financial experts to make sure that you are making the right move. Book an appointment to make sure that you can release cash from your home safely and securely.
The cost of releasing equity
If you are still at the decision making stage and are not sure where to start, it’s a good idea to look at the estimated value of your property against what you have remaining of your outstanding mortgage. This will give you an idea of how much equity you have in your property. While you can get an estimated value for your property, any lender will carry out formal searches to value your property against the current market.
Make sure you consider how your monthly repayments will change once you have increased your mortgage, if they are not manageable you may need to rethink your strategy. On some mortgage products there may be early termination fees if you choose to remortgage before the end of your fixed rate. Make sure you get advice!
Get in Touch
If you are looking for sound mortgage advice make sure you speak to a member of our team and book an appointment or contact us on 0330 3530325. You can also follow us on Facebook, Twitter, Instagram and LinkedIn for all our latest news.
Embrace Financial Services usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Exclusive deals are made available to Embrace Financial Services by PRIMIS Mortgage Network, to which Embrace Financial Services are an Appointed Representative
Thomas Morris is an Introducer Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.
Embrace Financial Services Ltd. is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority.