equity

[christinemar]

If my house is worth 220.000 and my mortgage is 65.000 can I use the equity in my house to pay off my mortgage?
Any advice would be most welcome. Thanks in advance.

[factor-fiction]

Yes- if you sell your house! If you want to remain in the property you could sell it through equity release.

[Oneeyedvic]

Your equity is the difference between your house value and your mortgage.

So your Equity = �220,000 - �65,000 = �155,000

If you sell your house, then you will receive this money (your equity).

If you borrowed more money, then your equity would be lower.

[Ethel]

People talk about equity release as if it is money in their hand, money to spend as they wish.

Equity release is another word for debt - a secured loan, a remortgage -set against the equity in the house. It has to be paid back in the same way as another mortgage or secured loan, with interest.

If you are elderly, it is possible to release equity for a monthly income or a lump sum. When you die, or sell the house, all the monies plus interest (if not paid back on a monthly basis) is repaid to the equity company.

So, as already pointed out, the only way to use the equity and pay off your mortgage is to sell the property.

[Loosehead]

so you want t borrow �65K to repay your mortgage. So you'll still owe.......err �65K! All you'll do is rack up some charges!

[R1Geezer]

I know, write yourself a cheque for �65k Tada! the wisdom of the Geezer is strong today.