Need Capital? There is no place like home.

Every time you make a principal and interest mortgage payment, you accumulate equity in your house. If you purchased your house and financed only part purchase price in a mortgage, you own equity in your house. Each month, assuming you don't have an interest-only loan, you are increasing that percentage. If you've owned your house for some time and been diligent about payments, even paying extra from time to time, you may have accumulated quite a bit of equity and not even know it.

One of the rewards of building equity is you can remortgage it and use the equity as capital. If you have a good credit history and have been paying on your home for a number of years, you may be a good candidate for a remortgage. Even better, if the value of your property has increased since you purchased it, you may find that you have more equity than you expected. Of course, if you have paid your home off completely, you may also be eligible for a remortgage.

Another way to use a remortgage to free up capital is to remortgage your house under more favourable terms than your original mortgage. Remortgaging is a great way to lower your interest rate and reduce fees by financing a lower amount or less of a percentage of the total value of your house. Should you choose this option, your monthly payments could be lowered enough to allow you to reapply the extra cash to higher interest rate debt, tuition payments or medical bills.

There are several ways a remortgage can be structured. Be sure to do your research about the different programs available and come prepared with questions. Before you decide with which plan to proceed, be sure to check whether your existing mortgage is subject to early redemption charges. It can be thousands of pounds. You should have the opportunity to compare several scenarios to determine which one is right for your particular circumstances, including the level of equity you own in your house.