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NatWest mortgages are available to over 18s. Your home or property may be repossessed if you do not keep up repayments on your mortgage. The content on this page is guidance only and does not constitute advice. NatWest does not currently offer 'equity release mortgages', 'lifetime mortgages' or 'home reversion' products.
What is equity release and home equity?
Home equity (sometimes referred to as mortgage equity or house equity) is the value of your home minus any remaining capital you owe on your mortgage. Put simply, equity is the amount of your home you own.
Equity release is the name given to a number of products that allow you to access the home equity you have built up as cash. This is just one way to use home equity to release cash and you should consider all your options. NatWest doesn't currently offer equity release products.
How does equity release work?
Releasing equity means taking some of the equity you have built up in a property and turning it back into money. Your percentage of equity reduces but you have access to liquid funds in return. There are two main types of equity release products available that can help you release equity tied up in a property. There are costs and interest usually associated with these types of products.
Information Message
NatWest does not currently offer 'equity release mortgages', 'lifetime mortgages' or 'home reversion' products. This information is for guidance only.
Lifetime mortgages
A lifetime mortgage (or equity release mortgage) is a long-term loan secured against your home. It's normally repaid when you move into long-term care or upon death.
Information Message
Home reversion
This is where you sell part of or all your property to a home reversion provider. When you move into long-term care or upon death, the property is sold, with proceeds divided accordingly to the proportions of ownership.
Information Message
What can I use equity release for?
You may want to release money from your property to pay for home improvements, or to use the money to supplement your pension.
NatWest do not offer equity release products but you might be able to achieve your goals with remortgage or additional borrowing.
Like all financial decisions, releasing money from your home is something that needs careful thought.
What is negative equity?
Negative equity is a scenario where the remaining capital you owe on your mortgage is more than your property is worth. It is often caused by your property reducing in value, compared to the value of the property when you bought it.
An example could be:
- You have an outstanding mortgage balance of £250,000 on your home.
- Your home was valued at £275,000 when you bought it but is now worth £240,000 after a fall in house prices.
- You are in negative equity of £10,000 (-4.2% equity).
Homebuyers with smaller mortgage deposits are more at risk of negative equity. For example, a 5% deposit mortgage means you only have 5% equity in your property when you complete the purchase. Therefore, a 5% fall in house prices would be enough to cause negative equity.
