New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Think twice before remortgaging, mortgage holders warned

Thu, 02 Mar 2006

Mortgage holders who are considering trying to find a remortgage to release capital from their home are being urged to consider all the options before committing to a new loan.

Although there are some good remortgage offerings available, it may be better for some homeowners to use their savings first rather than repaying interest on a loan, suggests the editor of financial website Moneywise.

Emma-Lou Montgomery says personal loans could even be a better option, as this form of borrowing offers a shorter repayment term despite usually having a higher interest rate.

"As a first step though, decide whether you need to borrow at all," she advises consumers.

She says that the disadvantage of remortgaging is that people may end up borrowing money over a longer period of time than they would with a personal loan.

Ms Montgomery points out that if people have considerable savings, it may benefit them to use their savings rather than keeping them "for a rainy day".

However, remortgaging remains a popular way of releasing capital. Last year, remortgaging accounted for more than a third of all mortgages taken out in the UK, according to the Council of Mortgage Lenders .

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.
Browse

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.
Sign the petition

Free mortgage quoteFree Mortgage Quote

Apply Here

Mortgages in Scotland Mortgages in Scotland

Read More

Equity releaseEquity Release

  • Unlock equity in your home.
Apply Here

Switching mortgagesSwitching Mortgages

Read More

Home reversion plansHome Reversion Plans

Apply Here

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?
Apply Here

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation
Apply Now

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover
Apply Now

Mortgage Newsletter