You bought your home years ago, your mortgage has reduced, and your property has increased in value. Now you need funds. Maybe for a renovation, to clear debts, or to help a family member. Instead of selling, you explore how to release equity from your home. In most cases, this means remortgaging to access a portion of that value.
Releasing equity from your home means unlocking some of the value tied up in your property, without selling it. Most homeowners do this by remortgaging to borrow more against their home, or by using a later-life equity release product such as a lifetime mortgage.
At TBI Conveyancing, we help homeowners across England and Wales navigate the legal side of remortgaging and equity release. We make the process clear, efficient, and easy to follow.
What you’ll learn in this guide
- What releasing equity means in simple terms
- The main ways to release equity, including remortgaging
- How the remortgage process works step by step
- The role of a conveyancing solicitor and why it matters
- How much equity you may be able to release
- The costs, risks, and alternatives to consider
By the end, you will have a clear understanding of your options and the steps needed to move forward with confidence.
What Does It Mean to Release Equity from Your Home?
Releasing equity from your home means accessing some of the value built up in your property, usually by borrowing against it.
Equity is the difference between your home’s current value and the amount you still owe on your mortgage.
A simple example
If your home is worth £300,000 and your remaining mortgage is £180,000, you have £120,000 in equity.
That equity has built up over time in two main ways:
- You have repaid part of your mortgage
- Your property has increased in value
How equity grows over time
Most homeowners build equity gradually. Each monthly mortgage payment reduces what you owe. At the same time, property prices may rise, increasing your home’s value.
For example:
- You bought your home for £200,000
- Your mortgage is now £120,000
- Your home is now worth £275,000
This means your equity has grown to £155,000.
Can you release all of your equity?
Not usually. Lenders will only allow you to borrow up to a certain percentage of your property’s value. This is known as the loan-to-value (LTV) ratio.
For example, if a lender offers up to 80% LTV:
- Your home is worth £300,000
- 80% of that is £240,000
- If your current mortgage is £150,000
- You may be able to release up to £90,000 (subject to affordability checks)
This is why having equity does not always mean you can access all of it. Understanding how equity works is the first step. It helps you see what may be possible before exploring options like remortgaging to release equity.
What Are the Main Ways to Release Equity?
There are a few different ways to release equity from your home. The right option depends on your age, financial position, and long-term plans.
For most homeowners, remortgaging is the most common and flexible route. Later-life equity release products are also available, but they work very differently and are not suitable for everyone.
Remortgaging to release equity
Remortgaging means replacing your current mortgage with a new one, usually borrowing more than you currently owe. The extra amount is released to you as a lump sum.
This option tends to suit:
- Homeowners with a steady income
- Those who can afford monthly repayments
- People looking to fund renovations, consolidate debt, or raise capital
Key point:
You will continue making monthly repayments, just like a standard mortgage.
Lifetime mortgage
A lifetime mortgage is a type of equity release product, typically available to homeowners aged 55 and over. You borrow against your home, but do not need to make monthly repayments unless you choose to.
Instead, interest is added to the loan and repaid when the property is sold, usually after death or moving into long-term care.
This option tends to suit:
- Older homeowners who want to access funds without monthly repayments
- Those planning to stay in their home long term
Key point:
Interest compounds over time, which can reduce the value of your estate.
Home reversion plan
A home reversion plan involves selling part or all of your property to a provider in exchange for a lump sum or regular payments. You retain the right to live in the property, usually rent-free.
This option tends to suit:
- Older homeowners who do not mind giving up a share of their property
- Those who want a guaranteed lump sum without taking on debt
Key point:
You are selling part of your home, often below full market value.
Other borrowing options worth considering first
Before releasing equity, it is worth considering whether a simpler option may work better.
These include:
- Personal loans
- Savings or investments
- Family support
- Government schemes (depending on your situation)
In some cases, these may be more cost-effective or carry less long-term risk.
Comparing of your options
| Option | How it works | Who it may suit | Monthly repayments | Main risks |
| Remortgaging | Replace your mortgage and borrow more against your home | Homeowners with income and good affordability | Yes | Higher monthly payments, risk if repayments are missed |
| Lifetime mortgage | Borrow against your home, repaid when property is sold | Over 55s wanting no monthly payments | No (optional) | Interest builds quickly, reduces inheritance |
| Home reversion | Sell part or all of your home for a lump sum | Over 55s comfortable giving up ownership share | No | Loss of ownership, below market value sale |
Why Do Homeowners Release Equity?
Homeowners release equity for many different reasons. In most cases, it comes down to needing access to funds without selling their home.
Understanding why people do this can help you decide whether it makes sense for your situation.
Common reasons for releasing equity
Home improvements and renovations
Many homeowners use equity to extend, modernise, or improve their property. This can increase both comfort and long-term value.
Example: Funding a kitchen extension or loft conversion.
Paying off debts
Some people release equity to consolidate existing debts into one monthly payment.
Important: You are turning unsecured debt into secured borrowing against your home. This needs careful thought.
Supporting children or family
Equity is often used to help children with a house deposit, university costs, or financial support during difficult times.
Raising funds for another property
You may release equity to invest in a second property or buy a holiday home.
Improving monthly finances
Remortgaging can sometimes reduce monthly payments, especially if you secure a better interest rate while releasing funds.
Major life changes
Divorce, separation, retirement planning, or changes in income can all lead homeowners to access equity.
When releasing equity may make sense
- You have built up significant equity in your home
- You have a clear and planned use for the funds
- You can comfortably afford any new monthly repayments
- The outcome improves your financial position or quality of life
When it may not be the best option
- You are unsure how the money will be used
- The repayments would stretch your finances
- You are using it to cover ongoing spending without a long-term plan
- There are cheaper or lower-risk alternatives available
Releasing equity can be a useful financial tool when used for the right reasons. The key is understanding the impact it will have on your finances, both now and in the future.
How Does Remortgaging to Release Equity Work?
Remortgaging to release equity means replacing your current mortgage with a new one, usually for a higher amount. The difference between your old mortgage and the new one is released to you as cash.
The process works like this:
- You take out a new mortgage with a lender
- Your existing mortgage is paid off (redeemed)
- You borrow more than your current balance
- The extra amount is released to you as a lump sum
A simple example
- Your home is worth £300,000
- Your current mortgage balance is £150,000
- You remortgage up to £210,000
Your old mortgage is repaid, and you receive the remaining £60,000 as released equity (before fees and costs).
How loan-to-value (LTV) affects your options
Lenders base your mortgage on a percentage of your property’s value. This is known as loan-to-value (LTV).
In the example above:
- Borrowing £210,000 on a £300,000 property = 70% LTV
Lower LTV ratios often give you access to better interest rates. Higher LTV borrowing may still be possible, but it can come with higher costs and stricter criteria.
This means the amount of equity you can release depends not just on your property value, but also on what lenders are willing to offer.
Affordability still matters
Even though you have built up equity, lenders will still carry out affordability checks. They will assess your income, outgoings, credit history, and financial commitments.
You must be able to afford the new monthly repayments.
Remortgaging is often the most flexible way to release equity. It allows you to access funds while staying in your home, but it is important to understand how borrowing more will affect your finances.
Step by Step: The Remortgage Process for Releasing Equity
Remortgaging to release equity is usually straightforward, but there are still several important stages. Each one helps make sure the new mortgage is suitable, the old one is repaid correctly, and the legal work is completed properly.
In many cases, a remortgage can take around 4 to 8 weeks, but this depends on the lender, the valuation, how quickly documents are returned, and whether any legal issues arise.
Review your current mortgage and check for early repayment charges
The first step is to look at your existing mortgage. You need to know:
- how much you still owe
- whether your current deal is ending soon
- whether any early repayment charges apply
- whether there are exit or admin fees to pay
This matters because leaving a mortgage early can be expensive. In some cases, an early repayment charge can reduce the benefit of releasing equity right now.
Your lender can provide a redemption statement, which confirms the amount needed to repay the mortgage in full on a given date. This figure is essential later in the process.
Work out how much equity you may be able to release
Next, you need a rough idea of how much equity is available. This depends on:
- your property’s current value
- your outstanding mortgage balance
- the maximum loan-to-value a lender is willing to offer
- your income and affordability
For example, if your home is worth £325,000 and your current mortgage is £145,000, a lender offering 75% loan-to-value may lend up to £243,750. That could leave room to release part of the difference, subject to checks and fees.
This step helps you set realistic expectations before applying.
Speak to a mortgage broker or lender
Once you know what you may need, the next step is to speak to a mortgage broker or lender. They will assess your circumstances and help identify suitable products.
A mortgage broker can often compare deals from multiple lenders. That can be useful if you are looking for the best balance of rate, fees, flexibility, and borrowing amount.
At this stage, you may also receive an agreement in principle. This is an early indication of how much a lender may be prepared to lend, based on basic financial information.
This matters because it gives you a clearer idea of what may be possible before you move into a full application.
Get a valuation and affordability checks
Once you apply, the lender will carry out more detailed checks. These usually include:
- income and employment checks
- credit checks
- affordability assessment
- a property valuation
The valuation confirms how much the property is worth. This affects the loan-to-value and can influence the mortgage products available to you.
Delays can happen here if:
- income documents are missing
- bank statements raise questions
- the valuation is lower than expected
- the lender asks for extra evidence
This stage is often one of the biggest decision points in the process.
Receive your mortgage offer
If the lender is satisfied, they will issue a formal mortgage offer. This sets out:
- how much they will lend
- the interest rate
- the term of the mortgage
- any special conditions
- the amount of equity to be released on completion
This is the point where the legal work becomes more active. The offer is sent to you and to your conveyancing solicitor.
You should read it carefully and make sure you understand the new repayment commitment before moving ahead.
Instruct a conveyancing solicitor
Once your mortgage offer is in place, you will need a conveyancing solicitor to deal with the legal side of the remortgage.
This is where TBI Conveyancing supports the process. Your solicitor will:
- review the mortgage offer
- confirm your identity and carry out legal checks
- request the redemption statement from your current lender
- deal with the new lender’s legal requirements
- prepare the paperwork for completion
- arrange for the old mortgage to be repaid
- register the new mortgage at HM Land Registry
Even where no property is being bought or sold, this legal work still matters. The lender needs a solicitor to protect its interest and make sure the new charge is registered correctly.
Redeem the old mortgage and complete the remortgage
On the day of completion, your new mortgage funds are sent to your solicitor. The solicitor then uses those funds to repay your existing mortgage in full.
This is known as redeeming the old mortgage.
If there is money left over after repaying the old mortgage and any fees, that balance becomes your released equity.
This stage must be handled accurately. Any error in figures, timing, or lender requirements can delay completion.
Receive any released funds
Once the old mortgage has been repaid and completion has taken place, your solicitor will send the remaining funds to you.
This is the money you are releasing from your home.
After completion, the solicitor also deals with HM Land Registry to register the new mortgage against the property. This final step does not usually delay your access to the funds, but it is still an important part of closing the matter properly.
Where remortgage delays often happen
Although many remortgages are smooth, delays can happen when:
- a lender is slow to process the application
- the valuation takes longer than expected
- extra affordability evidence is requested
- the redemption statement needs updating
- legal documents are not returned promptly
- there is an issue with the title or Land Registry records
Clear communication and prompt legal handling can make a big difference here.
A realistic timeline
While every case is different, a typical remortgage to release equity can take a few months.
Some cases move faster. Others take longer if the lender is delayed or extra checks are needed.
Understanding each stage helps you plan properly and avoid surprises. It also shows why having an experienced remortgage conveyancing team matters, especially when funds are needed for a specific purpose or timeframe. Our team at TBI Conveyancing can help you through every step of the process. Contact us today and find out how.
How Much Equity Can You Release?
The amount of equity you can release depends on a few key factors. It is not simply the total equity you have built up.
Lenders will look at:
- Your property’s current value
- Your remaining mortgage balance
- The loan-to-value (LTV) they are willing to offer
- Your income and affordability
- Your age and product type (for later-life equity release)
A practical example using LTV
- Your home is worth £320,000
- Your current mortgage is £140,000
- A lender offers up to 75% LTV
75% of £320,000 is £240,000.
If you borrow up to that level:
- £240,000 (new mortgage)
- minus £140,000 (existing mortgage)
- leaves up to £100,000 potentially available as equity (before fees and checks)
Why you cannot release all of your equity
Even if your equity is higher, lenders rarely allow you to borrow the full amount. They limit borrowing to reduce risk.
This means:
- You must keep some equity in the property
- The amount available depends on lender criteria
- Affordability checks still apply
Why LTV matters for your deal
Lower LTV ratios usually mean:
- Better interest rates
- More lender options
- Lower overall borrowing costs
Higher LTV borrowing can still be possible, but it may come with:
- Higher interest rates
- Stricter checks
- Increased monthly repayments
Understanding this helps you balance how much you release against the long-term cost.
What Does It Cost to Release Equity?
The cost of releasing equity depends on the route you take. Remortgaging and equity release products have different fee structures.
Remortgage costs
When remortgaging to release equity, you may need to budget for:
- Arrangement fees charged by the lender
- Valuation fees to confirm your property’s value
- Product or booking fees depending on the deal
- Broker fees if you use a mortgage broker
Some deals include incentives such as free valuations or cashback, but this varies.
Equity release product costs
If you are considering later-life equity release products, costs can include:
- Product setup fees
- Financial advice fees (often required)
- Valuation and administration fees
These products can also have higher long-term costs due to how interest builds.
Early repayment charges
If you leave your current mortgage before the end of a fixed or discounted period, you may pay an early repayment charge (ERC).
This can sometimes be a percentage of your remaining mortgage balance. It is important to check this before proceeding, as it can affect whether releasing equity now is worthwhile.
Legal fees and valuation costs
You will also need to budget for legal work. A conveyancing solicitor will:
- Handle the remortgage process
- Repay your existing mortgage
- Register the new mortgage with HM Land Registry
Legal fees for remortgaging are usually fixed or clearly quoted upfront. There may also be small additional costs for searches or title checks, depending on the lender’s requirements.
Overall, costs can vary depending on your lender, product, and circumstances. The key is understanding what each fee covers and how it impacts the total cost of borrowing.
What Are the Risks and Drawbacks?
Releasing equity can be a useful option, but it is important to understand the potential downsides before going ahead.
Increased borrowing
When you release equity, you are increasing the amount you owe on your home. This means:
- Higher overall debt
- More interest paid over time
- A longer repayment commitment
Monthly repayment pressure (for remortgages)
If you remortgage, your monthly payments may increase. This can affect your day-to-day finances, especially if interest rates rise in the future.
You need to be confident that repayments are sustainable long term.
Impact on inheritance
Releasing equity reduces the value of your property. This can lower the amount you leave behind for family or beneficiaries.
With lifetime mortgages, this effect can be more significant due to compound interest.
Compound interest (equity release products)
For lifetime mortgages, interest is often added to the loan rather than paid monthly. Over time, this can grow quickly.
This means the total amount owed can increase substantially, especially over many years.
Risk of repossession
With a remortgage, your home is used as security. If you fail to keep up with repayments, your property could be at risk.
This is why affordability checks are so important.
Not always the cheapest option
Releasing equity may not be the most cost-effective way to raise funds. In some cases, alternatives like savings, downsizing, or unsecured borrowing may be more suitable.
When releasing equity may not be sensible
- You are borrowing without a clear purpose
- Repayments would stretch your finances
- You are using it to cover ongoing expenses
- There are lower-risk or cheaper alternatives available
Frequently Asked Questions About Releasing Equity
How easy is it to remortgage to release equity?
Remortgaging to release equity is usually straightforward if you meet lender criteria.
Lenders will assess your income, credit history, and property value before approving the application.
If your finances are stable and you have sufficient equity, the process is often smooth. Working with a mortgage broker and a conveyancing solicitor helps avoid delays.
How long does it take to release equity through remortgaging?
It typically takes between 4 and 8 weeks to release equity through remortgaging. This includes the application, valuation, mortgage offer, and legal process. Timescales can vary depending on the lender, how quickly documents are provided, and whether any issues arise during checks or legal work.
Is it better to remortgage or use equity release?
For most homeowners, remortgaging is the more flexible and cost-effective option. Remortgaging allows you to borrow more at standard mortgage rates, but you must make monthly repayments.
Equity release products, such as lifetime mortgages, may suit older homeowners who want to avoid monthly payments, but they can be more expensive long term due to compound interest.
Can I release equity to buy another property?
Yes, many homeowners release equity to fund a second property purchase. This could be a buy-to-let investment or a holiday home.
Lenders will assess affordability and your overall financial position, including any existing commitments, before approving the borrowing.
Can I release equity for home improvements?
Yes, releasing equity is commonly used to fund home improvements.
Projects like extensions, renovations, or energy upgrades can improve your living space and may increase your property’s value. It is important to balance the cost of borrowing against the potential return.
Can I sell my home after releasing equity?
Yes, you can usually sell your home after releasing equity. If you have remortgaged, you will need to repay the outstanding mortgage when you sell.
If you have an equity release product, the loan is typically repaid from the sale proceeds, subject to the product terms.
Is releasing equity safe?
Releasing equity can be safe if it is affordable and suits your financial goals. The key risks come from borrowing more against your home and the long-term cost of interest.
Taking advice and understanding the terms of your mortgage or equity release product helps you make a confident decision.
What happens if house prices fall after I remortgage?
If house prices fall, your equity may reduce and your loan-to-value may increase. This could make it harder to remortgage again in the future or access better rates. However, as long as you keep up with repayments, a fall in property value does not affect your current mortgage terms.
Speak to TBI Conveyancing About Remortgaging to Release Equity
If you are thinking about releasing equity from your home, it helps to have clear, reliable legal support from the start.
At TBI Conveyancing, we specialise in remortgage conveyancing. We guide you through the legal process, deal directly with your lender, and ensure your existing mortgage is repaid and your new one is registered correctly.
We offer a fixed-fee service, so you know exactly what to expect with no hidden costs. You will also have a dedicated point of contact, keeping everything simple and easy to follow.
If you are ready to explore your options, or just want clarity on the process, you can speak to our team today. We will explain your next steps in plain English and help you move forward with confidence.
