Remortgaging to Release Equity: Secure Financial Freedom in 2024

Remortgaging to release equity from your home can provide a cash boost for your finances. If you're a homeowner over 55 and have being paying off your mortgage for a good few years, you may have built up equity you could remortgage and release cash from. We explore how it works and how to get advice on your options.

Table of Contents

Table of Contents

Remortgaging To Release Equity From Your Home

mortgage release equity

Author Paul Murphy Later Life Finance


As a specialist later life mortgage release broker, Later Life Finance are well positioned to provide a professional overview of how to remortgage and release equity from your house or flat. 

Remortgaging with equity release is a powerful financial tool that allows homeowners to access the built-up equity in their property.

By refinancing or taking out a new mortgage, homeowners can release a lump sum or take regular payments based on your and age property’s current market value.

This strategy offers flexibility to raise tax free cash from your home. 

However, careful consideration is necessary to balance the benefits and potential drawbacks of remortgaging for equity release; there are lots of options available to consider which we can help you navigate. 

We explore how to safely remortgage and release equity from your home. 

remortgaging and releasing equity with a pad and figures comparing the top companies
Very good
Michael Dilucia
Michael Dilucia
My equity release application had been rejected 3 times when I was referred to Peter at Later Life. He was extremely thorough, patient, friendly, and knowledgeable. He helped us with every step of the application and explained everything clearly and patiently. We finally succeeded in getting the equity release we wanted. I cannot recommend them highly enough. Their service goes above and beyond. Very happy customers!
Sherry Izadi
Sherry Izadi
Paul has been a rock throughout the most traumatic time of my life. His patience has been endless as I was clueless about my financial complications after the death of my husband. I recommend his services to anyone out there needing his advice and guidance.
Hazel Franklin
Hazel Franklin
Paul Murphy was superb in sourcing and arranging my lifetime mortgage and his professionalism was second to none. I would recommend him without reservation.
Tony Holloway
Tony Holloway
Paul did a first class job helping me secure a great rate for my equity release proposition. I like the idea of equity release but at the right rate Paul was competitive and at the expense of his own commission made it happen. I really felt I was the focus not him. The big firms with the fancy marketing were almost twice as much in terms of all- important compound interest. I highly recommend Paul, he works for you, not 'them'. I also felt safe with the solicitors he recommended, they too sent a first class guy who was a pleasure to work with. Equity release is not cheap, it's vital that people like Paul work for your best interest (pun intended). What price can you place on the latter peace of mind having financial security brings. Highly delighted.
Mike Murray
Mike Murray
We have used Paul's services twice in just over a year. Initially it was to change provider as better interes rates were available. On the annual review it transpired that no early repayment charges would be levied. Being a Yorkshire man l searched for best rates, providers and advisors and it was back to Paul. I have no loyalty where money is concerned but transparency, knowledge and reliability are paramount. That's exactly what we got. Good service, excellent communication, expedience and saved money. Second time around not even a direct fee to pay for the service. Another provider did come up with an option however their fees were somewhat prohibitive, when l brought this to their attention they offered to slash the fee. Not good practice. So after all the waffle. I have no reservations in recommending Paul's services.
Anthony Grey
Anthony Grey
We had reservations about Equity Release plans and approached a number of leading companies. Glad we settled with Paul Murphy and Responsible Life. He was patient and personable and guided us through the process. We received a most professional service, never felt under pressure. The plan is now in place. Excellent communications throughout. No hesitation, would highly recommend Paul. Jw.
Jeffrey Wade
Jeffrey Wade
A truely excellent service from Paul. From the moment we made contact with Paul he provided clear balanced advice supported by any documentation we asked for. We researched the market at the same time, independently, and it was evident Paul was offering a very competitive product that met our needs exactly. Paul’s speed of communication was outstanding, by e mail or phone, and we literally had replies within minutes. An extremely professional and friendly service and we were delighted Paul secured the deal we wanted. We wouldn’t hesitate to recommend Paul’s expertise, advice and resultant product suggestions to anyone considering these financial products. Thank you!!
Priors Bob
Priors Bob
Brilliant service from this company! Paul was so helpful all through the process and made everything so simple to understand! Thank you Paul, you are a star! Would definitely recommend!
Alice Froggatt
Alice Froggatt

How Can I Release Equity From My Mortgage?

Releasing the equity in your home as cash via a mortgage can be done through several methods, each with its own advantages and considerations.

Here are some common ways to release equity from your mortgage:

1.Remortgaging with Equity Release

One of the most popular methods is to remortgage your property. 

When you remortgage, you take out a new mortgage on your property, usually with a different lender or a new deal with your existing lender.

By doing so, you can borrow additional funds based on the increased value of your property. The difference between the new mortgage amount and your existing mortgage balance is the equity you release.

2. Lifetime Mortgages

If you are a homeowner aged 55 or older, you may consider a lifetime mortgage, which is a type of equity release product.

With a lifetime mortgage, you can borrow against the value of your home while retaining ownership.

The borrowed amount, along with interest, is repaid when the property is sold, typically upon your passing or moving into long-term care.

3. Home Reversion Plan

 Another equity release option for older homeowners is a home reversion plan.

In this arrangement, you sell a portion or all of your property to a reversion company while retaining the right to live in the home.

The company will pay you a lump sum or regular payments, and when the property is sold, they receive the agreed-upon share of the proceeds.

4. Second Charge Mortgage:

Also known as a secured loan, a second charge mortgage allows you to borrow additional funds while keeping your existing mortgage in place.

This option can be suitable if you want to avoid remortgaging or if you have a favourable interest rate on your primary mortgage.

Before deciding to release equity from your mortgage, it’s crucial to consider the following:

  • Financial Implications: Releasing equity will increase your overall debt, potentially leading to higher monthly repayments or an extended mortgage term.

Ensure that you can comfortably afford the new repayment schedule.

  • Interest Rates and Fees: Compare interest rates and fees associated with different equity release options. Be aware of any arrangement fees, valuation costs, and early repayment charges that might apply.
  • Impact on Inheritance: Equity release may reduce the value of your estate and the inheritance you leave to your beneficiaries.

Discuss this aspect with your family and seek professional advice.

  • Professional Advice: It’s highly recommended to seek advice from an independent financial advisor or mortgage broker who specializes in equity release.

They can help you understand the options available, assess your suitability, and find the most suitable solution for your specific circumstances.

Remember that releasing equity from your mortgage is a significant financial decision, and it’s crucial to make an informed choice that aligns with your long-term goals and financial security.

How Does Remortgaging with Equity Release Work?

Remortgaging with equity release typically involves refinancing the existing mortgage or taking out a new mortgage on the property. 

The lender assesses the property’s current market value and the homeowner’s creditworthiness to determine the new mortgage amount. 

The amount borrowed is based on a percentage of the property’s value and can be used to release equity.

The equity release process offers flexibility, allowing homeowners to choose between a lump sum payment, regular income, or a combination of both. 

The released equity can be used for various purposes, such as home improvements, debt consolidation, funding education, or supplementing retirement income.

It’s essential to carefully consider the implications of remortgaging with equity release, as it may result in higher monthly repayments or an extended mortgage term. 

Seeking advice from our expert equity release advisers is crucial to ensure this option aligns with your long-term financial objectives.

Benefits of Releasing Equity through Remortgaging

remortgaging to release equity with a mortgage application

Remortgaging to release equity offers several benefits for homeowners:

  1. Access to Tax Free Cash: Equity release allows homeowners to access a cash without the need to sell your home. This can be invaluable for funding major expenses such as home improvements or to raise as cash injection. 

  2. Flexible Repayment Options: Homeowners can tailor their equity release to suit their financial needs. They can choose between a lump sum or drawdown plan, making regular payments or none at all, providing the freedom to structure the mortgage in a way that best meets their requirements.

  3. Tax Efficiency: The funds released through equity release are generally tax-free, providing a tax-efficient way to access additional capital.

  4. Retain Ownership and Residence: By remortgaging to release equity, homeowners can maintain ownership and continue to live in their beloved home, ensuring stability and peace of mind.

Pros and Cons of Releasing Equity via Remortgage Deals


  1. Unlocking Financial Opportunities: Releasing equity can provide a gateway to investment opportunities, property improvements, or debt reduction, enhancing your overall financial position.

  2. Debt Consolidation: Consolidating debts into one mortgage payment can simplify financial management and may lead to lower interest rates compared to other forms of borrowing.

  3. Enhanced Retirement Income: For retirees, releasing equity can supplement retirement income, enabling a more comfortable and secure retirement.


  1. Long-Term Commitment: Remortgaging may extend the overall mortgage term, resulting in more extended repayment obligations.

  2. Potential Early Repayment Charges: Some mortgage deals may include early repayment charges or exit fees. Homeowners should carefully review the terms of the new mortgage to avoid unexpected costs.

  3. Property Valuation Risks: The value of the property may fluctuate over time, impacting the equity available for release.

It’s crucial to weigh these pros and cons carefully, considering your financial situation and long-term objectives before proceeding with remortgaging for equity release. Professional advice can help you make an informed decision tailored to your specific needs.

End of Article Summary:

In conclusion, remortgaging with equity release provides homeowners with a valuable means of tapping into the wealth accumulated in their property. The ability to access funds without selling the property offers financial flexibility, enabling individuals to pursue important goals and aspirations. 

Nevertheless, it’s essential to understand the implications and potential trade-offs associated with this strategy. Seek advice from a qualified financial advisor to assess whether remortgaging for equity release aligns with your long-term objectives. 

With careful planning and consideration, homeowners can leverage the power of equity release to secure their financial future and make the most of their property’s potential.

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Equity release FAQs

The main downside to equity release is the effect of compound interest on the most common type-the lifetime mortgage. However, this interest effect can be avoided or reduced with voluntary repayments. The equity release council included voluntary repayments as a requirement for lenders to meet their strict codes of conduct. The ability to make voluntary, penalty-free partial repayments was made a compulsory feature for all products to meet Equity Release Council standards from March 2022.
Prior to finalising your decision on equity release, it is crucial to seek financial guidance with a qualified equity release adviser. Discussing your plans with an independent equity release adviser will enable you to compare the whole market, and your adviser will identify the most suitable solution to match your specific circumstances. Additionally, should you opt to proceed with equity release, it is essential to obtain legal advice. Your adviser will be able to suggest an independent solicitor who specialises in equity release.
While Martin Lewis does not provide a direct endorsement for equity release, he acknowledges that under specific circumstances, it can be a viable solution to access funds tied up in your home to meet living costs and provide financial security. Where downsizing has been ruled out, for example, Martin Lewis has a balanced view on the concept of equity release and it's benefits to homeowners seeking extra funds in later life, and advises independent advice on equity release is obtained.
Equity release provides you with a cash lump sum or a drawdown facility to take the cash over a longer timeframe. The "catch" with equity release is that the money released from your home, plus interest will need to be repaid when the property is eventually sold. With a Lifetime Mortgage, you will owe the money borrowed plus the loan interest accrued. If you make voluntary repayments to the mortgage this will help reduce the amount of interest repayable on the mortgage, and will help maximise any inheritance your beneficiaries may receive.
It takes between six and eight weeks for an equity release application to complete and to receive your funds. The timescale depends on whether you have a mortgage to repay from the money taken, and whether there are any legal processes which may delay the process, such as moving home or changing the title.
A lasting power of attorney, or LPA is not required to setup an equity release plan. However, having an LPA in place is important to ensure access to further funds from a drawdown plan if you ever lose capacity to make your own decisions, or cannot sign your wishes for physical reasons, such as a stroke. If you have not set up an LPA and it is required, the Court will need to appoint a deputy for you. Planning ahead is prudent to ensure you have arranged such measures in case an LPA is required in the future, and this can save a great deal of stress if and when the time comes to use the LPA.
Equity release funds are tax-free and can be used for anything you wish (providing any existing mortgage is repaid from the funds). Popular uses of equity release funds include repaying mortgages and unsecured debt, home improvements, a cash boost, purchasing second homes, and helping family with a financial gift.
Lifetime mortgages are the most popular form of equity release and provide the flexibility to move home and make voluntary payments, if preferable. Equity release customers unlocked £1.6 billion in property wealth in Q2 of 2022. (Equity release council)
An equity release application should take around eight weeks until you receive your equity release funds. This depends on whether you have an existing mortgage to repay and if any changes to the title are required, which can increase the timescale to arrange.
In July 2023 the lowest Equity Release rate is currently 6.03% (Monthly Equivalent Rate) fixed for life. The highest interest rate in the market is currently 8.64% (Monthly Equivalent Rate).