If the value of your home has risen significantly since you took out your mortgage – and, frankly, whose hasn’t over the past few years – you might be tempted to remortgage to free up some of that cash.
You could clear credit card or personal loan debts – or enjoy spending it on home improvements, a new car or a fabulous holiday.
With so many mortgage lenders competing for business, provided you’re up-to-date with your repayments and your financial situation hasn’t deteriorated markedly, you should have no difficulty finding one willing to offer you a larger loan.
Chances are you will even be able to get it at a lower interest rate than you are paying now.
If you have a particularly good deal with your existing lender, and it’s keen to keep your business, you might simply be able to increase your current loan, avoiding the hassle and cost of remortgaging.
But however you go about it, the end result is that you will owe more, so think very carefully before committing yourself.
To help you decide if it really is worth increasing your mortgage, read The dangers of remortgaging to free up cash.
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