Remortgaging gives you the opportunity to not just save money but also to raise money in the process. If you have sufficient equity in your property, you can remortgage to release funds to consolidate debt or raise capital for any number of reasons.

Raise Capital
As the interest rates on mortgages are typically much lower than those that apply to personal loans and credit cards, it often makes sense to add any planned borrowing to your mortgage rather than take out other loans. Many homeowners use cash released by remortgaging for school fees, a holiday, wedding or home improvements.

Consolidate Debt
Consolidating debt when you remortgage works in very much the same way as raising capital. The difference is that the funds released are used to pay off other existing debts like credit cards or loans. It is a popular way of taking advantage of the lower interest rates offered by mortgage lenders compared to credit card or personal loans.

Endowment Shortfall
The subject of endowment shortfalls has received a lot of media attention in the last few years. Many people in the UK have been warned that there will be an endowment shortfall because of the under-performance of the investment that they set up to pay off their interest only mortgage. Remortgaging is a popular way of releasing funds to meet this shortfall.

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