Keeping your head above water: remortgaging as a means to make money

With the average UK debt set to rise to £33,000 for each adult (including mortgages), many people are turning to consolidation loans and, in extreme cases, bankruptcy as a way out. Indeed, the old adage “only borrow what you can afford to pay back” seems to have slipped from UK vocabulary, as consumerism grips the nation.

But for most people, the ‘hows’ and ‘whys’ of their financial predicament is the least of their worries; all they want to know is, how do they get out of their situation?

Of course, many people don’t actually classify the mortgage on their home as ‘debt’, as it’s seen as one of life’s essentials and it’s considered more as’leverage’ for the future. Nonetheless, a significant chunk of many people’s debt IS their mortgage and it constitutes the vast majority of their monthly outgoings. Therefore, it’s essential that the best deal be found in order to minimise interest expenditure and maximise ‘now’ money.

There are many UK remortgages facilities available, from simple information and advice, to full start-to-finish services. Indeed, there are immediate online ‘remortgage’ searches available, and also mortgage advisers on hand for a more personalised approach. So at the very least, it’s worth making enquiries, to see if there are any savings to be made.

But remortgages are not only a good idea for those wishing to simply save on their monthly-outgoings. Remortgaging a home can also be used to free-up equity, which can then be used to consolidate other debts into one simple, monthly mortgage repayment. And for many, this is a far more sensible option than taking out standard loans to cover their debts.

And even if there is no other existing debt, the equity that is freed-up when remortgaging a home can even be used to ‘invest’ in the property. Many people choose to use the existing equity to fund a new patio or a new garage, which in the long run will add substantial value to the address. And given the current prices of property in the UK, reinvesting in an existing property may seem a far more viable option.

One thing is for sure though. For those who are up to their eyeballs in debt, the sooner affirmative action is taken, the less likely the situation will be to spiral out of control. And for those who need access to money that they simply do not have, remortgaging the home is the most sensible way of freeing up cash. It’s either that, or taking out additional bank loans, risking even further debt.