Remortgage to release equity
Remortgaging to release equity lets you access the cash tied up in your property without selling it. Whether you’re funding home improvements, helping a family member, or consolidating debt, this guide explains how it works, what to expect, and what to watch out for.
In this guide
What does releasing equity through remortgaging mean?
Equity is the difference between your property’s current market value and the amount you still owe on your mortgage. When you remortgage to release equity, you take out a larger mortgage than your current balance, and the difference is paid to you as a lump sum.
How equity works — an example
£300,000
Property value
What your home is currently worth
£180,000
Outstanding mortgage
What you still owe your lender
£120,000
Your equity
The portion you own outright
In this example, you have £120,000 of equity. Most lenders will let you borrow up to 80–85% of the property’s value in total, meaning you could potentially release up to £60,000–£75,000 while keeping a reasonable LTV.
How much equity can you release?
Most lenders cap borrowing at 75–90% of the property’s value (loan-to-value or LTV). The higher the LTV, the higher the interest rate — so releasing equity typically costs more than a like-for-like remortgage.
Your income and outgoings also play a role. Even if you have plenty of equity, the lender will only let you borrow what you can comfortably afford to repay.
What can you use released equity for?
- Extensions, loft conversions, or new kitchens
- Can increase your property’s value
- Often the most cost-effective way to fund large renovations
What are the risks of releasing equity?
Benefits vs risks
Benefits
- Access large sums at mortgage rates (lower than personal loans)
- No need to sell your home
- Flexible — use the funds for almost any purpose
- Can add value if spent on home improvements
Risks
- Higher monthly payments on the larger mortgage
- More total interest paid over the mortgage term
- Less equity buffer if property values fall
- Your home is at risk if you can’t keep up repayments
What alternatives are there to releasing equity?
- Borrow extra on top of your existing mortgage without switching lender
- May be cheaper than a full remortgage if the rate is competitive
- Less paperwork — usually no solicitor or valuation needed
How to remortgage to release equity
The process is similar to a standard remortgage, with a few extra considerations around how much you want to release and why.
Work out how much equity you have
Get an idea of your property’s current value (online tools or a local estate agent can help) and check your outstanding mortgage balance. The difference is your equity.
Decide how much you want to release
Think about what you need the funds for and how much extra you can afford in monthly payments. Remember, the more you borrow, the higher your LTV and potentially your rate.
Speak to a broker
A broker will compare deals across the market, factor in fees and ERCs, and tell you exactly how much you can release at what cost. They’ll also check whether a further advance or secured loan might be a better option.
Apply for the new mortgage
Provide proof of income, bank statements, and details of the purpose of the additional funds. The lender will value the property and run affordability checks.
Completion and funds released
Once approved, the new lender pays off your existing mortgage and the additional amount is transferred to you. The whole process typically takes 4–8 weeks.
Get expert advice on releasing equity
“We released £45,000 to build an extension that added real value to our home. Our broker found a rate that barely changed our monthly payments.”
At Clearview Mortgage Solutions, we help homeowners across the UK release equity for a wide range of purposes. We’ll explain exactly how much you could access, what it would cost in monthly payments, and whether there’s a better alternative for your situation.
Contact us for a free, no-obligation equity release review. We’ll give you clear numbers, honest advice, and access to 90+ UK lenders.
Related guides
More guides in our remortgage mortgage hub.
Speak to an Expert
Our calculators give you a useful estimate, but your actual mortgage and protection options depend on your full circumstances, credit history and lender criteria. Clearview Mortgage Solutions’ FCA regulated—our CeMAP-qualified advisers are on hand to explain how each calculator applies to you and to help you compare real mortgage quotes from 90+ UK lenders.
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