Remortgages for low to middle income households will become a lifeline to financial health in the years ahead.  The cash release from equity will prove to be a cheap borrowing possibility for those that need to fund major expenses or to allow for investing.  Recent information has come to light through a study that shows the group to be hardest hit from the impact of the recession and recovery effort will be the low to middle income households.

Even in recovery the low to middle income households are expected to see their living standards continue to decline behind those of the more affluent.  A study by the think-tank Resolution Foundation shows that this income group was already showing weakening signs before the credit crisis.  The recession pushed their standard of living level further down and even in recovery there will be many years before the low to middle income group will see any relief.

The report titled “Growth Without Gain?” was authored by Matthew Whittaker.  Mr. Whittaker states in the report "Members of the squeezed middle did not share in the spoils of economic growth in the pre-recession years, with wages at the median and below stagnating. Gains instead flowed primarily to higher income households and, more particularly, to those at the very top of the distribution.

"If this trend continues once growth returns it may not be just those on low and middle incomes finding themselves left behind in the next decade, but rather the majority of society."

For those homeowners that have adequate equity levels a remortgage could be the lifeline to investments leading them out of the tight squeeze.