Equity release through a mortgage

If you think that you have got a sufficient amount of equity locked into your property and then you may be in a position to be able to release equity from your house through a mortgage or what is technically known as a remortgage. Releasing equity property is becoming more and more common amongst homeowners. Whether you have a buy to let mortgage for an investment property or the traditional residential mortgage, if you have sufficient equity in your property that there is a good chance that you release it through a remortgage.

So how much equity is needed to enable a homeowner to remortgage to release some extra cash from their property? Well to determine this you first need to look at what the mortgage lenders are offering and how much deposit they require for a mortgage. As a general rule of thumb the equity that is required in the property needs to be at least the same amount as the deposit at a mortgage lender would require four when they are issuing a new mortgage. So for example, if you have a buy to let mortgage on your property and you would like to remortgage to release equity from your property that you would typically require to have at least 30% equity in your house. This is because many of the buy to let mortgages these days require a 25% deposit..

The amount of equity that you can release from your property really depends on the way the mortgage market is performing. So in order to determine how much cash you can release from your house, it is advisable that you seek the advice of a qualified and experienced mortgage broker. An experienced mortgage broker would instantly be able to tell you the kind of mortgage products that are available to you to help you release cash. He or she will also know the typical amount of money that can be released based on the value of your property.