Recent research data compiled by Castle Trust indicates an average household’s outgoing for the monthly mortgage payment totals 30%.  This is a significant amount even when other expenses like petrol and groceries are not increasing in cost simultaneously.  A household’s mortgage expense each month is important due to the imbalance which can be created in the budget if the monthly mortgage is too high compared to the overall income of the house owners.  There are ways to fight back when the monthly mortgage is out of control.  A remortgage can often be a viable solution in helping to lower the monthly mortgage cost.  Many homeowners are still unaware of the possibilities a remortgage can carry with it.

There are several benefits which are possible with a remortgage product.  A remortgage is typically sought out by homeowners who are trying to find a way to lower their monthly mortgage payment amount.  There are other benefits a remortgage can offer as well.  A remortgage can possibly lead to extra cash in hand at the end of the process.  This can be used for old debt settlement, taking oneself on a much-needed holiday, or possibly to make some home improvements.

The monthly mortgage has to be held to a level which does not consume too much of the monthly income of a household, whether a remortgage is looked into or not.

Castle Trust chief executive Sean Oldfield commented on the impact of the monthly mortgage amount, saying: “Even with mortgage rates well below their historic average, mortgage payments represent a significant proportion of a household’s monthly spending, with major differences from region to region. Households are vulnerable to any rise in their mortgage rates.”

Oldfield continued: “The risk of rising mortgage rates is a major issue for homeowners with their finances already under pressure and shared equity can play a major role in reducing risks, including the risk of going into arrears, by cutting monthly mortgage commitments.”