Get Home Equity Loan Applcation

Yes, it's possible to release equity to buy a second home by unlocking money tied up in your current one. If you buy a second home using equity release, you'll still need to live in your main home for at least six months of the year. There's also the issue of stamp duty, depending on the value of your second home.

Most lenders allow you to borrow up to a maximum of 80-85 percent of the amount of equity you have. For example, if you have £100,000 home equity you might be able to borrow around £80,000 to £85,000 tops.

In most cases, you'll need a credit score of at least 680 to qualify for a home equity loan, but many lenders prefer a credit score of 720 or more. Some lenders will approve a home equity loan or HELOC even if your FICO® Score falls below 680.

Lenders prefer borrowers with good credit scores and low debt-to-income (DTI) ratios. You generally need at least 20% equity in your home to be approved for a home equity loan. You usually cannot tap 100% of your equity.

You can get a home equity loan from a credit union, bank, or specialized lender. A good home equity loan should have no or low fees, a low fixed interest rate, no prepayment penalties, and transparent terms.

A favorable credit score is essential to meet most banks' approval requirements. A credit score of 680 or higher will most likely qualify you for a loan as long as you also meet equity requirements, but a credit score of at least 700 is preferred by most lenders.