Remortgage and release equity

dragon786

Hi All,
Please Help. I looking to remortgage and release equity. I would like my remortgage for £153,000 for 12yrs and release equity for £30,000 but i would like it for 5yrs only. Is that possible?

kingstreet

Not within a single mortgage.

You need to take the whole mortgage over a single term, then make overpayments to repay the other bit within the five years.

For example;-

£183,000 over 12 years @ 4% = £1,602

and

£153,000 over 12 years @ 4% = £1,340
plus
£30,000 over 5 years @ 4% = £552.

Therefore, if you overpay by the difference, £1,892 - £1,602 = £290 per month, you'll be in the same position after five years.