Remortgaging to release cash for aiding a homeowner’s budget will become even more important it was revealed in a recent statement by George Osborne.  Mr. Osborne has pointed out that due to spending cuts by the government, higher inflation, and unemployment pressures UK families with children will in 2016 be worse off than 14 years ago.  An analysis by the Institute for Fiscal Studies (IFS) showed that average incomes when adjusted for inflation will decline by 3 per cent this year and further declines will occur in 2012.   

Paul Johnson, director of IFS, said "In the period 2009-10 to 2012-13, real median household incomes will drop by a whopping 7.4% – a record matched only by the falls seen between 1974 and 1977.

"That will extend to six years the period for which total spending will have been cut year-on-year.  One begins to run out of superlatives for describing quite how unprecedented that is.

"Certainly there has been no period like it in the UK in the last 60 years."

Alison Garnham, chief executive of the charity Child Poverty Action Group, said "The IFS analysis confirms that the chancellor's new tax and benefit measures are a takeaway from low-income families with children to those at the middle and top. It is particularly perverse to reduce incomes of the lowest-paid working families by reducing tax credits when this is the group the government claims it wants to help through improved work incentives."

A cheap remortgage deal can add cash through an equity cash release deal into a homeowner’s hands for use to help stretch a budget, pay for unexpected expenses, medical needs, or other needs of a homeowner’s budget.