Your home is more than just a place to live — it’s an asset that could help you reach financial goals.
Whether you’re planning renovations or want to simplify multiple debts, remortgaging to release equity can be a powerful option.
But is it the right move for you? Let’s explore how it works, when it makes sense, and what to watch out for.
What Does “Remortgaging to Release Equity” Mean?
When you remortgage, you replace your current mortgage with a new one — either with your existing lender or a different one.
If your home’s value has risen or you’ve paid down some of your mortgage, you can borrow more than you currently owe and use the extra cash for other purposes.
For example:
- Home worth: £350,000
- Remaining mortgage: £200,000
- New mortgage: £250,000
£50,000 equity released for renovations, debt repayment, or investment.
Using Equity for Home Improvements
Renovations can increase comfort and long-term property value.
Popular upgrades include:
- Kitchen and bathroom refits
- Loft or garage conversions
- Extensions or garden rooms
- Energy-efficiency upgrades (e.g. insulation, windows, solar)
Benefits:
- Potentially boosts your home’s value.
- May unlock better future mortgage rates if value increases.
- Interest rates are typically lower than personal loans or credit cards.
Tip: Always compare potential added value with the cost of borrowing to ensure the investment makes financial sense.
Using a Remortgage for Debt Consolidation
If you have multiple debts — credit cards, loans, or car finance — consolidating them into your mortgage can simplify payments and reduce monthly costs.
Benefits:
- One manageable monthly repayment.
- Lower interest rate compared to unsecured borrowing.
- Easier budgeting and improved cash flow.
Risks:
- Extending short-term debt over a long mortgage term increases total interest paid.
- Missed payments could risk your home, since the debt becomes secured.
Mortgage Knight’s advisers always assess your full financial position to ensure consolidation genuinely benefits you.
When Is Remortgaging a Good Idea?
It may be suitable if:
- Your fixed rate is ending soon.
- Your property value has increased.
- You’re planning significant renovations.
- You’re struggling to manage several high-interest debts.
It’s less suitable if:
- You’re close to the end of your term.
- You have early repayment charges.
- Your credit has worsened since your last application.
A broker can help calculate whether remortgaging or another finance route (like a secured loan or product transfer) is better value.
How a Broker Makes the Process Easier
At Mortgage Knight, we:
- Compare deals from over 90 lenders.
- Help you calculate potential savings and affordability.
- Handle the full remortgage process — from rate comparison to completion.
Whether you’re improving your home or restructuring debt, our goal is to help you make the smartest use of your equity.
Case Studies
Case Study 1: Laura – Kitchen Extension
Laura’s home had risen in value by £80,000. We helped her release £40,000 through a new 5-year fixed mortgage, funding a modern kitchen extension that added £60,000 to her home’s valuation.
Case Study 2: Adam – Consolidating Debt
Adam had £25,000 across loans and credit cards. Mortgage Knight arranged a remortgage reducing his monthly outgoings by £350, giving him breathing space to rebuild savings.
Case Study 3: Maria & Ben – Energy Upgrades
The couple remortgaged to fund solar panels and insulation, improving their EPC from D to B. They later qualified for a green mortgage deal with a lower rate.
Frequently Asked Questions
Q1. Can I remortgage before my deal ends?
Ans: Yes, but check for early repayment charges. A broker can tell you if it’s still worthwhile.
Q2. How much equity can I release?
Ans: Typically up to 85–90% of your property’s value, depending on lender and affordability.
Q3. Will releasing equity affect my rate?
Ans: Possibly. Borrowing more may increase your Loan-to-Value (LTV) and slightly raise your rate.
Q4. Is it better to remortgage or take a personal loan?
Ans: Remortgaging often has lower rates, but you’ll repay over a longer term. A broker can model both scenarios.
Q5. Can I use released equity for anything I want?
Ans: Yes — most commonly for home improvements, debt consolidation, or property investment.
Thinking about releasing equity?
If you’re a contractor looking for professional mortgage guidance, we’re here to help. Our specialist knowledge and lender relationships enable us to provide expert advice tailored to your situation.
Mortgage Knight can help you explore remortgage options, compare deals from over 90 lenders, and decide if it’s the right move for your goals.
Talk to a Mortgage Knight Adviser
