One of the best things about being a homeowner is knowing that the equity you hold is growing as you pay off your mortgage and the property\u2019s market value can potentially increase over time. Should the need ever arise, there are ways to unlock this capital to use as and when you like.\r\n\r\nIn this guide you\u2019ll learn about different ways to withdraw equity from a mortgage, the alternatives to them, and how the right mortgage broker can help you choose the best option.\r\n<ul>\r\n \t<li><a href="#definition">Mortgage equity withdrawal definition<\/a>\r\n<ul>\r\n \t<li><a href="#available">Is it available in the UK?<\/a><\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><a href="#withdraw">How to withdraw equity from a mortgage<\/a><\/li>\r\n \t<li><a href="#alternatives">Alternatives to consider<\/a><\/li>\r\n \t<li><a href="#expert">Speak to an expert<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="definition">What is mortgage equity withdrawal?<\/h2>\r\nMortgage equity withdrawal (MEW) is an American product which allows homeowners in the US to release equity from their property by securing a loan against its market value. The real value of the property reduces in line with the new liabilities secured against it.\r\n<h3 id="available">Is mortgage equity withdrawal available in the UK?<\/h3>\r\nYes. Although MEW is a US term, there is a UK equivalent in the form of <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/remortgage-guide\/">remortgaging<\/a> to release equity, or equity release mortgages available borrowers over 55.\r\n\r\nIf you\u2019re a property owner who\u2019s looking for information about withdrawing equity from your home, you\u2019ve come to the right place. Equity release and remortgaging for additional borrowing is not a decision to be taken lightly, and we offer a free broker-matching service that can introduce you to the right expert for either scenario.\r\n\r\nNot all mortgage brokers are the same, and if you\u2019re considering releasing equity from your home, you\u2019ll need to find one with the right expertise. If you\u2019re retired, we can match you with a later-life lending expert, and if you simply want to remortgage to access some of the capital in your home, we can find you an advisor who specialises in refinancing.\r\n\r\nAn expert equity release broker can lay out all of your options, offer you bespoke advice and make sure you get the best possible deal. An initial consultation with one of the advisors we work with won\u2019t cost you a penny, but it could save you time and money in the long run.\r\n<h2 id="withdraw">How to withdraw money from your mortgage<\/h2>\r\nThere are several ways to do this in the UK. If you\u2019re under the age of 55, one of the most popular options would be to <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/remortgage-for-equity-release\/">remortgage to borrow against the equity you\u2019ve built up<\/a> in your home over the years. For those over 55, there\u2019s a specific product category called equity release which allows you to release the capital tied up in your property, tax free.\r\n<h3>Remortgaging to release equity<\/h3>\r\nEquity is basically the percentage of your property that you actually own. If you were to buy a \u00a3200,000 house with a \u00a320,000 deposit, you would hold 10% equity. The amount of equity you have increases as you pay off your mortgage and when the property\u2019s value increases.\r\n\r\nThis gives homeowners the opportunity to refinance their mortgage to borrow against this accumulated equity, and the majority of mortgage lenders will allow you to do this for all kinds of legal purposes, from <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/debt-consolidation-mortgages\/">debt consolidation<\/a> to buying a shiny new car.\r\n\r\nThe exact amount of additional borrowing you could get and the terms under which a lender will offer it will vary depending on a number of factors.\r\n<h3>Equity release<\/h3>\r\nEquity release is a category of retirement mortgage products that allow homeowners over the age of 55 to release the capital they\u2019ve built up in their property as a tax-free equity withdrawal loan. Although this is popular among retirees who own their home outright, it\u2019s still possible to take equity release with an outstanding mortgage balance to pay off in your retirement years.\r\n\r\nOne of the biggest draws of equity release is that the capital you release is paid to you as a tax-free loan which doesn\u2019t need to be settled until the end of the term, and that will only be when the last surviving person named on the contact dies or enters long-term care.\r\n\r\nThere are several different types of equity release available, including <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/lifetime-mortgages\/">lifetime mortgages<\/a> and <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/equity-release-mortgages\/home-reversion\/">home reversion plans<\/a>. An equity release broker can bring you up to speed on the pros and cons of each type and help you make an informed decision on which one to consider.\r\n\r\nYou can find in-depth information about <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/equity-release-mortgages\/equity-release-explained\/">equity release mortgages<\/a> in our standalone guide.\r\n<h2 id="alternatives">Possible alternatives consider<\/h2>\r\nIf you want to raise extra funds through a property you own, withdrawing the equity from it isn\u2019t your only option.\r\n\r\nThere are viable alternatives to remortgaging and equity release, such as...<b><\/b>\r\n<ul>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/remortgages\/when-is-a-secured-loan-better-than-a-remortgage\/"><b>Secured loans<\/b><b>:<\/b><\/a> Homeowners who aren\u2019t eligible for a remortgage or don\u2019t wish to refinance often consider second charge mortgages as a way to borrow a large amount against the equity in their property. This is essentially a secondary mortgage on top of your primary one, and some secured loan providers can be generous when it comes to affordability.<\/li>\r\n \t<li><b>Personal loans: <\/b>Personal loans usually come with higher interest rates and the amount you can borrow will likely be more limited, but the plus side to consider is that they aren\u2019t secured against your property, so your home would not be at immediate risk.<\/li>\r\n \t<li><b>A <\/b><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/interest-only-mortgages\/rio-mortgages\/"><b>retirement interest-only (RIO) mortgage<\/b><\/a><b>: <\/b>A RIO mortgage is an interest-only mortgage for retired people with no end date for the term. By remortgaging to one of these agreements, you could release some equity and reduce your monthly payments, with the mortgage debt itself only due when you die or going into long-term care.<\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bridging-finance\/"><b>Bridging loans<\/b><\/a><b>: <\/b>This form of borrowing can be an alternative to remortgaging for additional borrowing, under certain circumstances. For example, if you were considering borrowing against your equity to fund home improvements, bridging finance could be a viable fallback option, especially if time is of the essence or you don\u2019t qualify for refinancing. A bridging loan could provide quick funds for the renovations and you could remortgage against the increased value of your property to serve as the exit strategy.<\/li>\r\n<\/ul>\r\nThese are just a few of the possible alternatives to releasing equity from your home. You can find more information in our <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/equity-release-mortgages\/alternatives-to-equity-release\/">guide to equity release alternatives<\/a> or speak to a mortgage broker to go through each option and discuss whether they\u2019re the right fit for you.\r\n<h2 id="expert">Thinking of withdrawing equity from your home? Speak to an expert first!<\/h2>\r\nWithdrawing equity from your property isn\u2019t something you should do lightly and it\u2019s highly recommended that you seek professional advice first. But you don\u2019t want advice from any old broker, you need to speak to a specialist with the right expertise for your circumstances.\r\n\r\nThis is where we come in. We offer a free broker-matching service that will take your situation into account before pairing you up with the perfect advisor. If you\u2019re retired and looking to withdraw equity, we\u2019ll find you a retirement mortgage specialist. If you simply want to refinance to borrow extra, we\u2019ll introduce you to a broker whose bread and butter is remortgages.\r\n\r\nCall 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-equity-release-specialist">make an enquiry online<\/a> and we\u2019ll match you with your ideal broker today - our service is simple, fast and free, and using it could save you money in the long run.