The UK could be about to experience record temperature highs in the coming days. This summer has the makings of a record breaker overall as June recorded the highest average ever and July looks to be a repeat of scorching heat making relief hard to find. Homeowners are likely looking for ways to make their home more comfortable, and the means of doing so could be as simple as getting a remortgage. Not only could a remortgage bring the means of upgrading a home to better handle the heat, but also to battle the cold of winter and perhaps saving money overall.

Remortgaging could save homeowners money in many ways, most particularly when their current mortgage term is due to end. At that time, the homeowners choose between a remortgage or they allow their lender to move them to the lender’s standard variable rate (SVR). There are particular times when one choice is more of a risk than others. Since a SVR could be double or more the interest rate level of a remortgage and therefore more expensive, when rates are high or rising choosing a remortgage could save a substantial amount of money over allowing a move to a SVR.

With a remortgage, even more savings could be found by choosing a fixed rate deal. Locking in at the current rate when increases are expected shields the homeowner from future rate hikes, and this could once again save them more money.

Another opportunity for homeowners choosing a remortgage, is cashing out their built-up equity. With an equity cash release remortgage, a homeowner could cash their equity out and have money in hand to pay for whatever needs necessary. One of which is to make upgrades and improvements to their property. While it is not necessary to do so with the funds, many homeowners do invest back into their property. In doing so, sometimes they increase the value of their property, and more often they increase the joy and experience of living in their home. 

During the winter, when energy costs were very expensive and rising more so, making a home more energy efficient saved homeowners money overall and they will do so winter after winter. In addition, the winter was more comfortable while being less expensive to be warm.

The same can be done for a home to help it be a relief during sweltering summer days. 

Making this choice could be good for many homeowners, but it should be made cautiously. Cashing out equity could be a good choice for some and not so good for others. Those with little equity built up risk going into negative equity. This could happen when property values decline, and this could occur when the housing market has less demand from buyers. In areas where the average house prices decline, property values can as well.

When a homeowner goes into negative equity, they are out of reach of a remortgage. As mentioned, without a remortgage at the end of a term, a homeowner is moved to the lender’s SVR and would be subject to not only higher interest rates than could be found with a remortgage, but they would be impacted by further rate hikes.

Homeowners should take into consideration the consequences of choosing an equity cash release along with the benefits of choosing to cash out equity. Homeowners should make an informed and smart decision for their unique situation. For many, this would mean doing research on their own or seeking out the advice of a financial or remortgage expert.

Beginning to gather smart information to make the right choice could be as easy as shopping for a remortgage online. Visiting the website of a remortgage broker could put many quotes from a variety of lenders into the hands of a homeowner. They might even discover an exclusive deal from a lender not offered directly to borrowers. There is also the possibility of a homeowner going from website to website of remortgage lenders to gather quotes. 

Once a homeowner has quotes to compare and review, they can make an informed decision as to what benefits or opportunities are available to them. It might be simply the smartest and most popular reason to remortgage and that is to save money. Currently, while rates are forecasted to increase possibly several times this year, saving money could certainly be possible with a fixed rate remortgage. Of course for those where it fits, an equity cash release remortgage could be used to find other ways of saving money, such as making a home more energy efficient to save money and perhaps much more comfortable during the summers and winters for years ahead.