Using Equity to Pay Off Mortgage

GlassPanda

Hello All

This may or may not be a daft question but I've been going round in circles looking for an answer.

Essentially I am looking to understand whether it is possible to use the increase in the value of my house to pay off a large chunk of my mortgage. We've done a lot of work to our house and had it valued at £75k more than we bought it for in 2015. We currently have about £130k remaining on our mortgage and want to be able to use the increase to pay off some of our mortgage - is this possible?

I know I can get better LTV on a new deal but want to understand how best we can be mortgage free and the £75k increase will obviously help go a long way.

Thanks in advance

[Deleted User]

If you borrow 75k to pay off 75k, you still owe 75k.

TrickyDicky101

You'd need to sell your property to release the value increase and then you'd need to buy another property with a smaller mortgage to result in a lower loan amount.

Otherwise, the only immediate benefit you could get will be better borrowing terms as a result of lower LTV.