Switch mortgage to release equity

You will always gain equity in your home if the value of your property has increased since you brought it.  You can switch mortgages to borrow extra money, and at the same time get a better deal.

For example: -

If the value of your home is £250,000 and your outstanding mortgage is £185,000, you have £165,000 worth of equity.  You could then approach a lender to get a new mortgage, for sat £200,000.  This will then release £30,000 worth of equity which you can use for whatever you wish, whether it be a new car, home improvements or to pay off any outstanding debt.  You must bare in mind that lender is restricted on how much he can actually lend you, it is all according on your income and maximum loan-to-value (LTV) In general the lenders will lend up to 95% of the property value, a 95% LTV.

In some cases it is possible that a lower interest rate along side minimal borrowings will save you money anyway, as it cancels out the cost of any extra borrowings.  However, if this is not so and you have an interest-only mortgage, you will need to increase your payments to your investment to cover the extra cost of borrowings.