Equity in Your Home? Here Are Your Options

Home equity simply arises when your property is worth more than the amount of mortgage that is still outstanding. If you sell your home, this difference is released. But even if moving is not an option for the time being, you do not have to wait until then: there are several ways to put your home equity to work now.

What Can You Use Your Home Equity For?

Some people use their home equity for a renovation or to make their home more energy-efficient. Others use it to help their children purchase a home, while someone else may finally make a long-held dream come true. In short, there are plenty of reasons to explore what is possible for you. Here are the most important options.

Increase Your Mortgage

The most straightforward option is to increase your existing mortgage. The lender will reassess your income to determine whether the higher monthly payments remain affordable.

If your mortgage is already registered with the Land Registry for a higher amount, you may even be able to avoid an additional visit to the notary.

Take Out a Second Mortgage

Would you prefer not to change your existing mortgage? A second mortgage can then be an alternative. You can choose the term and structure yourself, independently of your existing loan.

Please note: you will always pay the interest rate that applies at that time on this new mortgage portion.

Additional Options for Seniors

If you are over 50, you may already have built up substantial home equity, while your income may be decreasing. In that case, a standard mortgage increase may no longer be suitable. Fortunately, there are specific solutions that may still be available.

The Equity Release Mortgage

If you are 60 or older, an equity release mortgage may offer a solution. You can release your home equity as a lump sum, in monthly payments, or as a combination of both.

The interest that accumulates is added to the outstanding debt, meaning you do not have any additional monthly payments yourself. The total amount is settled when the property is sold.

Personalised Advice

What works best for you depends entirely on your wishes and personal situation. Using your home equity is never a one-size-fits-all decision.

Would you like to explore what would be the most sensible option for you? Please feel free to contact us. We are happy to think along with you.