Remortgaging does not automatically mean receiving money. In most cases, homeowners switch to a new deal on their existing mortgage balance to secure a better rate. However, if your property has increased in value or your outstanding balance has reduced significantly, you may have built up equity.
This equity can allow you to borrow additional funds as part of the remortgage. This is known as capital raising. People often use this option for home improvements, consolidating higher-interest debts or helping family members with a deposit.
It is important to remember that borrowing more increases your overall mortgage balance and monthly repayments. Lenders will assess affordability carefully, including stress testing against potential future rate rises before approving any additional borrowing.
If you’re considering accessing equity, our guide to Remortgaging to release equity explains how it works and what lenders assess.
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.