Usually, most people release between £10, 000 and £100, 000. The minimum amount you can release is usually £10, 000 because suppliers want to make sure it's financially justifiable. The maximum amount you can borrow with equity release is usually up to 60% of the value of your home, according to MoneyHelper. The maximum percentage of capital you can release from your home is usually up to 60% of the value of the property.
Usually, the older you are, the more capital you can free up. In addition, according to MoneyHelper, some equity release providers offer larger sums to homeowners with certain medical conditions. Most lenders allow you to borrow up to a maximum of 80 to 85 percent of the amount of capital you have. For example, if you have a mortgage equity of £100,000, you could borrow a maximum of £80,000 to £85,000.
This will depend on the lender and your personal circumstances; you may only be able to access a smaller percentage of your equity. Use our mortgage equity calculator to calculate how much equity you have in your home. You can then check if you can get a cheaper mortgage or if you can release the equity in your home. If you have paid a good part of your mortgage or the value of your home has risen, you may have accumulated a large amount of equity in the property.
Re-mortgaging to free up capital could be a way to access extra money, perhaps to renovate the house, pay off short-term debts or help with the education of your children. If you're considering this, you'll have to weigh those benefits against the long-term costs of doing so, and also look for better-value alternatives.
