Remortgages could be helpful to homeowners that have adequate equity and the ability to get a low interest rate from their lender.  By releasing the cash from the equity level in a home the homeowner could find some relief from the pressures on their tight budget being pressed even more from a weak economy including an announced second recession.

Economic growth has been downgraded by the Governor of the Bank of England, Sir Mervyn King.  He reported, “Underlying concerns about balance sheets, especially in the financial sector with its exposure to the euro area, mean that the path of recovery is likely to be slow and uncertain.

"We have been through a big global financial crisis; the biggest downturn in world output since the 1930s; the biggest banking crisis in this country's history; the biggest fiscal deficit in our peacetime history; and our biggest trading partner, the euro area, is tearing itself apart without any obvious solution. The idea that we could reasonably hope to sail serenely through this with growth close to the long-run average and inflation at 2 per cent strikes me as wholly unrealistic."

Interest rates on remortgage deals have been rising very slightly as lenders have taken on a more cautious outlook due to the weak economy and problems in the eurozone.  However, the rates are still very cheap and attractive.  For a homeowner that could benefit from extra cash they should consider releasing equity from their property with a remortgage.  It isn’t the right financial move for all homeowners so it should be carefully considered but for the right situation it could be the answer to easing the pressures on households from the UK’s economic problems.