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Re-mortgaging your home

Remortgaging is repaying your existing mortgage and replacing it with a new one. There are two main reasons for doing this:
To save money – lenders sometimes offer better deals to new borrowers than to existing ones, and by switching lender you can take advantage of this.

To raise capital – as your house price rises it can be used as security for additional borrowing, for example to purchase a second home or to extend your existing one

Equity release

The 'equity' in your home is the difference between its current value and any outstanding loans, such as a mortgage, secured on it.

Equity release lets you take some of the value stored up in your home either as a lump sum or gradually as a series of withdrawals over a number of years without the hassle of moving house or downsizing. It is potentially available to anyone who owns their own home in the UK over a certain value and if you are aged 55 years or older.

There are two main types of equity release, lifetime mortgages or home reversion plans. Both types allow you to remain in your home and release tax free cash to be used to bolster your retirement income or for other uses, for example, for home improvements, family gifts, purchasing car or travelling the world.

Be aware that equity release are not suitable for everyone, they can be expensive and inflexible if your circumstances change, they may affect your tax position and entitlement to state benefits and will reduce the value of your estate.