How Just Mortgage Brokers Can Help You
Anyone who owns their home and has been regularly making their payments on their mortgage may have accumulated a certain amount of equity. There could come a time when you wish to carry out home improvements like an extension or new roof, pay for a wedding or maybe for a university course or possibly refinance your debts into one manageable monthly payment. So to be able to release this equity could be an excellent solution.
Those who remortgage to release the equity that they have built up in their home, should consider carefully about how and when they are going to do this, however. The decisions that you make now can affect your financial situation for years to come. It helps to ask for advice from a mortgage broker like us here at Just Mortgage Brokers to ensure that you are making the right (and most effective) decision for you, at the right time.
How to Unlock Equity
The amount of equity that you have in your home refers to how much of it you own compared to your mortgage. So, for example if you have home worth £200,000 and you have an outstanding mortgage of £150,000, you have an equity of £50,000. This value will only increase as you go on paying your mortgage off subject to any changes in property prices.
You can apply to unlock this equity with a remortgage, leaving the lump sum for whatever reason you have, to need it. Do note however that most lenders will require a certain amount of equity to remain in the property and will only allow you to raise funds for specific reasons as permitted by their individual criteria.
When to Remortgage
The time to consider a possible remortgage will be different from one person to the next. It could be something that you have been planning for many years or an emergency that requires you to release some of the equity in your home to cover. Of course, every case is different and this is why it is important to speak to a mortgage adviser such as one of our team here at Just Mortgage Brokers.
By discussing your requirements with a mortgage broker, you can ensure you are not only obtaining specific information which is relevant to you and your situation, but it is also possible that they have access to exclusive products not available directly from the lender. A mortgage broker will help you to get the best deal that is available to you.
Why Remortgage for a Lump Sum?
There are an endless number of reasons why people remortgage to release equity in their home. Maybe there is a baby expected and you need to build an extra bedroom, you have a grown up child heading off to university. It might be that you are getting married – and we all know how expensive that can be, or want to consolidate your debts.
There are an infinite number of reasons why we need a lump sum of money at any given time, and if done at the right time, in the right way, remortgaging your home can be the perfect solution.
Make sure that you speak to an expert to get the best deal for you, so if you are thinking about remortgaging get in touch with one of our team here at Just Mortgage Brokers today.