Equity Release During Fixed Period

Trig79

Hi

We are currently weighing up the pros and cons of staying where we are or looking to move. 
As part of this consideration if we stay we would need to upgrade our house to support the growing family.
We have sufficient equity in the house to take somewhere between £40k-50k (not saying we would need all this).

My fixed deal doesn't come to an end until next year Aug 2023, but due to the spiralling cost of living are keen to progress with this equity release sooner not only allowing house extension but also restructuring some debt we have.

The only option I'm aware of is to remortgage now and pay the early settlement fee, are there any other options on the market that I could consider. I'm not keen on secure loans as they generally only allow 10-year payback.  I'd be looking for something that i can spread across the next 23 years of my current mortgage.


thanks in advance

Thrugelmir

Apply for an additional product, i.e. a homeowner loan, from your existing lender. Not all lenders are keen on lending for the purpose of debt consolidation. 

K_S

@trig79 You could look at taking out a further advance / additional borrowing from your current lender over a term that you are comfortable with. For home improvements, most lenders will be ok considering up to 90% LTV.

You will end up with two parts to your mortgage, the original one ending Apr 2023 and the second part.

kingstreet

It's a further advance or increased borrowing from your existing lender; or a capital raising remortgage if moving the mortgage to a new lender and borrowing more.

Equity Release has a specific meaning which might confuse future readers and is best avoided.