How to Release Equity from Your Property Without Selling
- Ben Stephenson
- Nov 12
- 7 min read
Updated: 5 November 2025
Yes, you can release equity from your property without selling, using a further advance, a remortgage or a second charge mortgage. Not all lenders will offer every option, but many mainstream and specialist lenders may consider well presented applications that meet their criteria.
If you are happy with your current lender and rate, a further advance lets you borrow more from the same lender, often on a separate product. This can work well for home improvements or controlled debt consolidation, subject to affordability and loan to value limits.
If your fixed rate is ending, or a new deal could save money overall, a remortgage to a higher balance may allow you to raise funds and reset your main deal at the same time, taking into account any early repayment charges and fees.
If you want to protect an existing low rate or avoid an early repayment charge, a second charge mortgage can sit alongside your main mortgage. This may suit where your current lender will not offer a further advance, but your overall equity and income support additional borrowing.
Each route has different costs, risks and flexibilities, so it is sensible to compare them side by side before choosing.
Table of contents
What does “releasing equity without selling” actually mean
Which options should I compare first
How much could I release, and what affects it
Costs you should expect
Property, credit and income checks you should anticipate
Equity release versus alternatives, which fits which goal
Risks to plan for early
Case study, how a client accessed funds without moving
FAQs
What does “releasing equity without selling” actually mean?
Releasing equity without selling means turning a portion of your home’s value into usable cash while staying put. In practice, this usually involves borrowing secured against your home or, for older borrowers, later‑life products designed to be repaid when you die or go into long‑term care.
You will see five broad families of solutions:
Further advance with your current lender
Remortgage to a higher amount
Second charge mortgage alongside your main mortgage
Which options should I compare first?
1) Further advance, “top up” with your existing lender
A further advance is additional borrowing from your current mortgage lender, often on a new sub‑account. It may keep costs lower than moving your whole mortgage if you have a competitive rate already. Expect a fresh affordability check, product fee, and valuation where required. A further advance is commonly used for home improvements or debt consolidation, and it keeps everything with one lender for simplicity.
Why clients choose it: you like your existing deal, your early‑repayment charge makes remortgaging unattractive, and the amount you need is modest to medium.
Watch‑outs: different rate to your main loan, fresh fees, and suitability checks. A lender may limit the purpose and loan‑to‑value.
2) Remortgage to release equity
A remortgage replaces your current mortgage with a new one at a higher balance. This can work well if your existing rate is expiring, or market pricing makes a full switch sensible. It can also reset terms and sometimes reduce the overall rate if conditions are favourable.
Why clients choose it: you want a clean slate on competitive pricing, or you need a larger capital raise than a further advance allows.
Watch‑outs: early‑repayment charges if you are mid‑fix, legal work and valuation, and standard affordability.
3) Second charge mortgage, keep your main mortgage untouched
A second charge sits behind your first mortgage, secured by the home. It is useful when remortgaging would trigger a large early‑repayment charge or worsen the rate on your whole balance. It may also be considered if your current lender will not offer a further advance, but your overall equity and income support additional borrowing.
Why clients choose it: to ring‑fence an existing low‑rate first mortgage while raising funds separately, and to avoid ERCs on the main loan.
Watch‑outs: the second charge generally prices higher than first‑charge borrowing, and you will have two secured payments. Lenders assess total secured debt and value.
How much could I release, and what affects it?
Further advance, remortgage and second charge are driven by:
Property value and total loan‑to‑value. Many lenders cap residential borrowing around familiar LTV brackets, while second charges typically assess combined LTV and may cap to moderate levels depending on credit and purpose.
Affordability. Lenders assess your income, committed expenditure and stressed payments.
Credit profile and purpose of funds.
Early‑repayment charges and product availability.
Property construction and condition. Some properties are acceptable with caveats, others are not.
As a rule of thumb, homeowners looking at a second charge often see lenders focus on a sensible percentage of the equity available and overall combined LTV, while later‑life products publish age‑banded LTV matrices. A broker will model each route side by side so you see net proceeds after fees and any ERCs.
Costs you should expect
Budget for:
Product fees and advice fees appropriate to the product.
Valuation and legal costs.
Broker fees, where applicable.
Early‑repayment charges if remortgaging within a fix.
On equity release, set‑up costs and, if you choose to make them, voluntary repayments.
On a lifetime mortgage, many plans include partial repayment allowances each year without penalty. On second charges and further advances, you will see APRCs shown so you can compare the true cost over the illustrative term.
Property, credit and income checks you should anticipate
Valuation standards apply to all secured lending.
Construction red flags can slow or stop applications. For example, spray‑foam loft insulation has caused mortgage issues for many homeowners. If your property has unusual construction, a short lease, or specific lease clauses, it may affect lender appetite.
Income verification. Employed, self‑employed and pension income are all assessed differently.
Credit conduct. Missed payments or high unsecured debt can limit options, although specialist routes may still exist.
Purpose. Consolidating short‑term debt into secured borrowing can reduce monthly outgoings, however it usually increases the overall cost and extends repayment. Always weigh short‑term relief against long‑term cost.
Equity release versus alternatives, which fits which goal?
Home improvements
First look: further advance or remortgage, especially if your fix is ending.
Later‑life: drawdown lifetime mortgage lets you release in stages as works progress.
Grants to consider first: Disabled Facilities Grants for adaptations, Boiler Upgrade Scheme for heat pumps. Grants may reduce, or remove, the need to borrow.
Helping family or purchasing another property
First look: remortgage or second charge, balancing ERCs and rates.
Later‑life: a lifetime mortgage can facilitate gifting, noting potential inheritance‑tax and benefit implications.
Debt consolidation
First look cautiously: second charge or further advance to ring‑fence your current rate, but ensure you understand total interest over time.
Later‑life: lifetime mortgage can clear remaining mortgage and unsecured debt, however compounding and inheritance impact must be weighed.
Supplementing retirement income
First look: RIO if you have stable income and want to maintain equity longer by paying interest.
Alternative: lifetime mortgage drawdown for flexible access without mandatory payments.
Protecting a low‑rate fix
First look: second charge so you do not disturb the main loan.
Alternative: small further advance if your lender’s products are competitive.
Risks to plan for early
Compounding interest on lifetime mortgages if you do not make repayments.
Early‑repayment charges on fixes, both mainstream and later‑life products.
Eligibility changes. Lender criteria and the Bank Rate evolve.
Benefits interactions. Lump sums can reduce entitlement to means‑tested benefits such as Pension Credit or Council Tax Reduction if savings rise above thresholds.
Property risks. Certain roof insulations or non‑standard constructions may cause valuation or lending problems.
Long‑term flexibility. Check overpayment allowances, downsizing protection and no‑negative‑equity safeguards where relevant.
Case study, releasing equity without selling or disturbing a low‑rate fix
Profile: Jane, 59, employed part‑time, owns a Bristol semi. Mortgage balance £112,000 on a low fixed rate with 3 years left, early‑repayment charge is significant. She wants £35,000 for an energy‑efficient kitchen and partial roof upgrade.
Assessment:
Option A, remortgage: clears funds but triggers an ERC and moves her whole loan to a higher rate, increasing total cost.
Option B, further advance: current lender will only offer a small top‑up due to internal policy.
Option C, second charge: funds the full £35,000, ring‑fences the great main‑mortgage rate, and allows penalty‑free overpayments up to a set limit.
Outcome: We recommended Option C with a clear overpayment plan from bonuses and savings, so the second charge runs far shorter than the headline term. We also advised no spray‑foam insulation during roof works to avoid future lending issues. Result, the works completed, Jane kept her low‑rate main mortgage, and the second charge is on track to be cleared in six years.
Why this works: protecting the main low‑rate loan while raising only what is needed, then overpaying the second charge, keeps the total interest paid lower than the remortgage route once ERCs are factored in.
FAQs
1) Is a lifetime mortgage the only way to release equity without selling?
No. Many homeowners use further advances, remortgages, or second charge mortgages. Later‑life borrowers may prefer RIO if they can service interest.
2) How much can I release?
It depends on your equity, affordability, age and property. Later‑life products use age‑linked LTVs, while second charges and further advances focus on combined LTV and income.
3) Will releasing equity affect my benefits?
It may reduce entitlement to means‑tested benefits if savings rise above thresholds. Always check your position before taking a lump sum.
4) Can I make repayments on a lifetime mortgage?
Modern plans often allow voluntary repayments each year without penalty, which can reduce the long‑term balance.
5) Are second charges safe?
They are regulated and widely used when appropriate, but, like any secured loan, your home is at risk if you do not keep up repayments.
6) What if my property has spray‑foam insulation?
This can be a barrier for some lenders and products. Obtain expert advice and a surveyor’s view before installing, or if it is already present.
7) Are HELOCs widely available in the UK?
No, they remain niche. Most UK homeowners use the options above for flexible access to equity.
Subtle but important tips from real‑world broking
Sequence decisions to cut cost, for example, time a remortgage to the end of your fix, or consider a small second charge as a bridge to your next main‑mortgage window.
Use drawdown only when needed to reduce interest accrual.
Check lease clauses and management charges on flats early, missing one clause can delay or derail lending.
Consider grants before borrowing for adaptations or energy upgrades, it protects equity.
Document your purpose and any gifts to family. Clarity helps with advice suitability and future estate planning.
Written by Ben Stephenson, CeMAP‑qualified Mortgage Broker, and reviewed by Mortgage Experts.
Manor Mortgages Direct is FCA authorised (496907), has traded for nearly 30 years, and is highly reviewed, 4.9 on Google. We have helped thousands successfully secure the right mortgage. We are Bristol‑based mortgage brokers, and assist nationwide.