Over recent years, remortgaging has become an increasingly straightforward process. The competition between lenders has led to improved turnaround times and service levels, together with a wide variety of mortgage products specifically designed for those of us wishing to change our mortgage without moving house.

A remortgage is, quite simply, taking out a new mortgage and repaying your existing one. One of the most common motives is to increase the level of borrowing, releasing equity to fund the house extension, the conservatory, or indeed the dream holiday retreat. This can be done through an existing lender, but accepted practice in the modern world is to scour the mortgage market before making a decision.

Public awareness of the benefits to be gained by a periodic mortgage review has risen dramatically, driven by lender advertising and by mortgage brokers and IFAs as a core part of their services to clients. The days of begging the local bank manager for a mortgage are in the very dim and distant past. The tables have turned, and the borrower is king.

Cashing in on Equity
Remortgage products can be used for the purpose of gaining lower interest rates on your mortgage or raising finance through releasing equity, or both. Put simply, if your home has positive equity - its market value being greater than the outstanding mortgage - you may be able to increase the size of your mortgage.

The rise in house prices experienced in the UK over the last six or seven years has put many of us in the position of having a healthy level of equity in their home. Interest rates are also at low levels, so debt is relatively cheap. Many have looked to cash in on this by increasing mortgage debt to fund lifestyle decisions.

Lending money secured against bricks and mortar is big business. Mortgages involving a level of debt which is a low proportion of the value of a property (‘low loan to value’) are especially prized by the banks and building societies. The availability of mortgage products designed to attract individuals in this position mean that often borrowers can extend their debt without necessarily experiencing a corresponding hike in monthly repayments.

There are, however, stings in the tail of many a mortgage product. With literally thousands of mortgage products out there to tempt us, the services of an independent adviser are invaluable to sort the wheat from the chaff and pinpoint the right deal for a particular borrower.

UK Remortgage or $US Offshore?
In terms of financing a Caribbean property purchase, the option of cashing in on the equity in a UK property can often be the first port of call.

FSA Mortgage Guide

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Your home may be repossessed if you do not keep up repayments on your mortgage There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £400