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Mortgages: the biggest investment there is, and you can reap the rewards too with an equity release.
By Harvey McEwan
Generating equity from your property is becoming more popular amongst homeowners in the UK, Bank of England figures released this month show. The final quarter of 2005 showed a sharp increase on the previous quarter, as £11.8 billion was released compared to only £8.86 billion.
The release of equity from a homeowners mortgage allows them to receive a cash equivalent for any rise in value their property might have achieved since the mortgage was created. Obviously, during the recent UK boom in house prices, particularly towards the end of 2003, equity release was reaching its highest levels. Since 2003 we have seen a drop in this release of funds, however the new figures suggest that a turnaround is occurring and this situation could well be sustainable.
From a personal finance point of view, equity release often makes sense if you require the cash sum in order to optimise your financial packages: to consolidate your debts, for example; to pay off high rate loans or to invest in shares or further property purchases.
The options available for funds released by revaluing your mortgage and withdrawing the equity are myriad. With the aid of an online personal finance database such as Moneynet.co.uk it is easy to find a range of personal finance options which can be employed to relieve or consolidate debt, attain a better credit card deal or even, should the mortgage itself prove to be unfavourable, provide alternative, more flexible mortgages. It is also well worth keeping an eye on the major high-street banks for mortgage deals as and when they appear. Barclays bank is one such provider and even within their mortgage packages, there is a wide range of choice.
Keeping on top of your mortgage pays for itself, finding or switching to the right mortgage for you can reap dividends.
Disclaimer:
All information contained in this article is for general information purpose only and should not be construed as advice under the financial Services act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.
About the Author
An avid follower and writer of all things financial, contibuting to the personal finance blog Cashzilla. Harvey lives and works in Edinburgh and can be contacted online here: tyranadollar@googlemail.com
Article Source: http://www.simplysearch4it.com/article/24653.html
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| Some other articles by Harvey McEwan | |
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