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		In today's low interest environment remortgaging of property is becoming more popular. People remortgage their homes for many reasons the most usual being to carry our home improvements or to reorganise their finances. The equity in your home is the current market value of your home less the amount of any existing mortgage. Most Banks will lend on the strength of the equity in your property but they will of course also take into consideration your ability to pay back the loan. Reorganising your finances   You might find yourself after a number of years having a number of different term loans such as car loans, home improvement loans, loans for holidays and matters of that nature. It is sometimes difficult to keep track of all your monthly repayments, which may be to different banks and at different times of the month and also for different terms. If you find yourself in this position it might be to your advantage to remortgage your property and use the funds to pay off all your existing loans so that you will be left with just one monthly payment, which can be spread out over a longer period. This will have a number of advantages over other borrowings: The Interest Rate Will Be Lower. Some Interest Can Be Offset Against Income Tax. Your Monthly Payment Will Be Lower Because Repayments Will Be Spread Over Many Years. You Will Only Have One Monthly Payment To Worry About! Your Bank or Building Society with whom you have your existing mortgage may agree to give you a top-up on your existing mortgage. You should also note that you do not have to go to your existing Bank or Building Society to remortgage your property. Generally speaking a top-up mortgage will work out cheaper than a remortgage of your property as there will be less formalities involved and you will also make a saving on registration fees and legal fees. In all cases it is wise to take advice from your Solicitor before you embark on a remortgage, as they will explain to you fully the terms of the loan, which can sometimes be difficult to understand. A word of warning   It is important in this present environment not to over borrow on the strength of your equity. Interest rates are currently at a very low level and they will certainly fluctuate over the period of the loan, which will of course result in changes in your monthly repayment. A new product on the market lately has been equity release for elderly homeowners who may be sitting on a valuable asset but with very little income. Once again it is advisable to consult a Solicitor before embarking on this type of finance.

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