Remortgaging can release equity (cash) tied up in your home that you can use for a variety of purposes. Equity is the difference between the market value of your home and the amount outstanding on the current mortgage. E.g. If your home is worth £100,000, and you owe £60,000 on your mortgage, the equity in your property is £40,000.

Reasons to remortgage

• Get a better interest rate
  If you are paying a high interest rate on your current mortgage, you can remortgage and get a better deal. Some options are Discounted mortgages, Fixed rate mortgages and Tracker mortgages
• Reduce the payment term
  If you are in a better financial situation than when you first set up your mortgage, you can remortgage and reduce the payment term. This means you will pay less in interest, though your monthly payments will increase.
• Release cash
  Most people release cash to pay off debts, though the money can be used for anything, such as a holiday or a new car

What is involved?

Remortgaging is a fairly simple process. Generally, you will apply to your chosen lender, and providing you meet their lending criteria, you will be accepted. It is then simply a case of filling in the necessary paperwork and paying any relevant arrangement fees. In some cases, a home valuation will be required. This can be an added cost, though there are many deals out there which offer this for free (you may pay more in other fees).

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Remember, Advance With Finance is a completely free, impartial service. Although the information on this website is provided by industry experts, it should never replace the advice of a debt adviser who understands your individual circumstances.

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What is debt consolidation?

Debt consolidation simply means replacing multiple loans with one new loan. If you have debts with different creditors, you can combine them into one loan using a debt consolidation loan.

Find out more about debt consolidation here >>