Most people use it to buy another property, fund a business, renovate, pay for education or clear expensive debt. Banks may ask you to state the purpose.
- Down payment on another property: the most common use
- Business funds: often cheaper than a business loan
- Renovation or fit-out
- Education or major family costs
- Clearing personal loans or cards: can lower your monthly payments
Rates are usually much lower than personal loans because the property secures the loan.
Related: Equity release · How it works
