If you’ve built up value in your home over the years, you might be considering ways to release some of that equity.
Whether you’re planning home improvements, helping family, or simply looking to enjoy more flexibility in later life, there are a few options worth exploring. In Leicester, two of the most common ways to unlock equity are through remortgaging and equity release.
Each option comes with its own features and considerations, depending on your age, circumstances, and what you want to achieve
What is equity and how does it work?
Equity is the amount of value you hold in your home once your mortgage balance is taken into account. As you make repayments and if your property value rises, this equity can increase over time.
This value doesn’t just sit there, it can be used to support your future plans. Whether you’re thinking about home improvements, helping family, or simply want greater financial flexibility, your equity could play a part.
For example, if your home in Leicester is valued at £300,000 and you still owe £100,000 on your mortgage, you’ve built up £200,000 in equity. The good news is you don’t have to sell your home to make use of it. There are options that let you access a portion of that equity while continuing to live there.
Knowing how much equity you’ve built up is a helpful starting point. From here, you can begin to explore which route fits your needs – whether that’s a standard remortgage or something more tailored later in life.
Releasing Equity Through Remortgaging in Leicester
One of the most common ways to access the value built up in your home is by remortgaging to release equity in Leicester. This means switching your current mortgage for a new one, often with a higher loan amount. The difference between what you owe and the new mortgage is released to you as a lump sum.
Homeowners often use this option to fund home improvements, clear debts, or help family with major life steps like buying their first home. As long as you’ve built up enough equity and your income supports the new amount, remortgaging can be a flexible and accessible way to unlock funds.
Lenders will carry out the usual affordability checks, including your income, outgoings, and credit history. If everything fits their criteria, the extra funds are released as part of your new mortgage.
Remortgaging to release equity in Leicester is typically best suited to homeowners under 55, as it works well within standard mortgage criteria. If you’re exploring this route, our local advisors can help review your current deal and find a remortgage that suits your plans.
Releasing Equity Later in Life
If you’re over 55 and looking to unlock some of the value in your home, there are later life mortgage options that could work for you. These are designed to support homeowners in later years who might not meet the criteria for a standard remortgage.
Later life lending includes products like retirement interest-only mortgages and lifetime mortgages. Both options let you stay in your home while accessing some of the equity you’ve built up, but they work in slightly different ways.
A retirement interest-only mortgage in Leicester involves monthly interest payments, with the loan amount repaid when the property is sold – typically after you pass away or move into long-term care. A lifetime mortgage, on the other hand, doesn’t require monthly repayments. Instead, interest rolls up over time and is paid off at the end, when the home is sold.
These products offer flexibility to homeowners who want to free up money for things like travel, care costs, or helping family, without having to downsize or sell.
If you’re considering releasing equity later in life, it’s important to speak to a mortgage advisor in Leicester who understands these products. Our team in Leicester can explain how they work and whether they’re a good fit for your circumstances.
What is equity release in Leicester?
Equity release is a way for homeowners aged 55 or over to unlock some of the value in their home without having to move. The most popular form of equity release is a lifetime mortgage, which allows you to borrow money secured against your home, while still owning it and living there.
With a lifetime mortgage in Leicester, there are no required monthly repayments. Instead, the interest is added to the loan, and everything is repaid from the sale of your home when you pass away or move into long-term care. Some plans offer the option to make voluntary payments if you’d prefer to manage the balance as you go.
How much you can release depends on your age, the value of your home, and sometimes your health or lifestyle. The money can be taken as a lump sum or in smaller amounts over time, depending on your needs.
Equity release can offer real freedom for people looking to support loved ones, cover everyday costs, or enjoy more flexibility in retirement. It’s not the right fit for everyone, but it can be a useful solution when explored carefully with proper advice.
If you’re thinking about equity release in Leicester, our advisors are here to help you understand the options and whether it’s the right path for you.
Getting tailored mortgage advice in Leicester
Releasing equity from your home is a big decision, but you don’t have to figure it all out on your own. Whether you’re thinking about remortgaging, exploring equity release, or just want to understand what’s possible, our team is here to help.
At Leicestermoneyman, we take the time to listen to what you need and look at your options carefully. We’ll guide you through the process, explain how everything works, and help you find the route that fits your plans best.
If you’re ready to take the next step or just want some honest answers, book an appointment with one of our mortgage advisors in Leicester today.
Date Last Edited: May 30, 2025
