Remortgaging Your House To Free Up Funds

Mar 26, 2016

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Remortgaging Your House To Free Up Funds

Posted in : Business Advice on by : Josh

For the majority of people in the UK, their homes represents the largest portion of wealth; they usually get a mortgage so that they can acquire the building, and then they spend on average 20 years paying it off so that they own it out-right, meaning they don’t have to pay interest on their loans. This all sounds very reasonable, so you might ask why people would want to re-mortgage their home.

The answer usually comes down to their plans in life; it could be that they’re trying to build a business, and they don’t have the necessary relationship with their bank to get a business loan that will cover it, or it could be that their children are looking for a deposit on their own home, and they don’t have the cash spare to do it.

As has been said, a home is usually a persons most valuable property, so getting a loan with that as the collateral gives them the opportunity to get more liquidated cash than they are likely to get otherwise.