how to unlock equity in house

harrio

Hi all just after a bit of advise my wife an I have 2 houses 1 has very little equity in but the other I bought as repo 6 months ago this is now worth 60 thou more than we originally borrowed, we have seen another house we like but have no deposit how do i unlock the equity in the house i have just renovated any advise would be much appreciated

PasturesNew

You don't unlock equity ... you are borrowing more, you are making your debt bigger.

Don't be sucked in by the slick wording the marketers used to get you to borrow money.

In answer to your question: you remortgage it. See a mortgage advisor to get the figures.

harrio

thanks for that I just wasn't sure I would be able to do that because only had the mortgage 6 months but i will find out.

Cissi

harrio wrote: »

how do i unlock the equity in the house

By selling it? That's the only safe way to unlock any equity, as you'll only know that it's really "worth 60 thou more" when you've found someone willing to pay that for it. Anything else is just speculation. By remortgaging to the new "full value" you risk ending up in negative equity if prices keep falling (as most of us believe they will). Personally I wouldn't take that risk in the current climate, especially when you already own one house with "very little equity" - and certainly not to buy another one, but it's your choice

poppysarah

Release "equity" by selling your home and pocketing the cash.

harrio

yeah cissi definatley needs some thinking about maybe it would be best to watch the market a little longer and see what happens.