Remortgage for cash

[GemmaPearl97]

Question about how remortgaging works & possible options
My husband & I own an apartment in London for 5 years. Value of property is £1 million. We paid £750,000 in cash/deposit. Mortgage of £300,000

We need to free up some cash for necessary medical treatment - which is expensive (£30,000). It has been suggested we could remortgage to release funds but I have no idea how this works - anyone got any helpful info, advice or experience? TIA

There’s some info here.
https://www.comparethemarket.com/mortgages/content/equity-release-remortgage/

Hey I'm a mortgage broker . Happy to help if you want to post your questions ? :-)

How would it work in my situation where 75% of our property is cash/equity. is there a certain amount you could expect to free up (percentage)?

Do you need certain reasons to remortgage or can it be for any purpose? How quickly would you expect for it to be released?

oh & also . we now live abroad (europe) don't own property here - Apartment is in London (we are both British). would this impact at all?

remortgage into offset account mortgage. This is specially for this reason! When you need emergency cash!

@GemmaPearl97
I recently released funds from our home for an extension, mortgage with hsbc. the way it worked in the end was that the existing mortgage remained unchanged and I took out what in effect is a home loan for the additional funds. Secured against property, 5 year fixed, has its own interest rate. This made sense for me as rates have gone up and existing mortgage is on a very low rate which I wanted to retain.

@GemmaPearl97 on the LTV question, we have about 50% equity and I could only borrow up to 60% as the main mortgage product was a 60% LTV product. Based on your numbers I would say you'd be similar but you have lots of headroom and £30k is a very small amount comparably.

PS you could also take out an unsecured loan or pay on CC?

Start by researching lenders who offer remortgage deals. They'll assess your property's current value and your financial situation to determine how much additional borrowing you can secure. It's advisable to compare offers and consider factors like interest rates, fees, and repayment terms. Using a home loan calculator can give you a clearer picture of your new monthly payments based on different scenarios.

I know that remortgaging can provide the funds you need upfront, but it also means increasing your overall debt and monthly repayments.

You can take out an additional mortgage or if your current mortgage is due to be refinanced then just increase the new one. We took out an additional mortgage half way through a fixed term. Same provider, different rate as it's a new deal. It was around £30k for some home improvements. Then last year when we were due to remortgage we added £75k on which we took in cash for school fees. It's all quite easy to do.