Remortgages obtained to help consolidate debt or for releasing cash will continue to be important as homeowners struggle with household budgets in the coming year.  Many homeowners in the last year turned to remortgages to help them and with little improvement in the economy it is expected that they will do so again in 2012.  Cheap remortgage deals continue to entice homeowners to grab a new deal.  The rates have been very attractive with some fixed rate remortgages closing in on tracker offerings.

Households reported that in the past year they were more than £500 a year worse off than in the previous year according to the Bank of England’s recent report.  Income available to households fell for the fifth year in a row with people reporting they have £46 less a month than the year before the annual survey revealed.

The report also revealed that many more people are falling behind in their bills.  The number of those that fell behind in 2010 amounted to 4.1 per cent whereas in 2011 there were 7.5 per cent that had come under the hardship of their bills according to a research study by NMG conducted for the Bank of England.

For homeowners with adequate equity a remortgage was beneficial.  Not only did the cheap interest rate assist in cutting budget costs but for many there was a release of equity cash.  This cash was used to consolidate debt, pay for unexpected expenditures, and to fund major expenses.  The benefit of a cheap remortgage is still available to homeowners that have not yet obtained a new deal.