If you would like to make major repairs or renovations to a home you own, you might consider using savings. You can also borrow if you do not have savings or wish to keep your savings in tact. One great way to borrow is through an equity cash release remortgage, an inexpensive way to remortgage and gain some extra money. You will be able to do much more in your home improvements if you use a remortgage option, as the financial implications will be less expensive than other forms of borrowing.

Housing Market Down

There are not many buyers in the housing market at the moment, with the economic implications of the financial crisis causing concern in the housing sector. Thus, it has become more purposeful and cost effective to pursue renovations on your own home. The benefits of this are huge. Firstly, you will be able to enjoy a nicer home after renovations are complete, and secondly, you will potentially be able to sell your home for a profit in future markets, which may be better than today’s market. Using a remortgage in order to make home improvements is therefore a great investment. The amount you might profit on would potentially pay more than any interest on a remortgage.

In addition, interest rates for a remortgage are currently the lowest seen in years, as the Bank of England keeps its lowest ever interest rate, which is the base for any interest. Any fees, which may have been large earlier this year, have now become much smaller, so a remortgage is more cost effective now than it has ever been. Deals are currently at much lower rates than they have been as well, making now the perfect time to remortgage.

An Acceptable Loan

While banks are reluctant to lend to new customers and mortgage deals for first-time buyers are higher than ever, the lucky ones who wish to remortgage have a great asset to their case—their house. A remortgage means you borrow against your house and take out money against the value of your house as cash for life circumstances or emergencies. However using the money to invest in the property is financially an incredibly smart decision, especially when property values are low. The amount you receive might not be as much as it would be if you were to remortgage at a time when property values were high, but that only means you will have less to pay back, and the improvements will mean your house is worth more if you sell in future.