Re-mortgage and make you dreams come true

How many of you are sitting on a fortune and haven't considered how it could improve your current lifestyle?

Everybody loves to boast about how much their property is worth on paper.

How about converting some of that recently acquired wealth into some immediate enjoyment or a lasting benefit?

The last year has seen a large increase in re-mortgages and secured loan business, this is mainly due to the booming property market and increased competition amongst lenders. There are many reasons for re-mortgaging. Saving money on your monthly payments, clearing unwanted debts or an overriding desire to treat themselves.

So what are people spending their new found fortunes on? Here's a guide to some of our most popular projects and purchases.

Home Improvements (common withdrawal £1,000 - £15,000)

Why not give the old place a bit of decorative colour in time for spring? Brighten up your home and start feathering your nest.

How long have you been waiting for your Mr or Mrs to realise your kitchen is falling apart? You know they're never going to fix that cupboard door. Why not get some cute workmen or women to do it for you?

That leaking shower head has been really getting on your tits. Instead of replacing it why not splash out and replace the whole suite?

Investment Property (common withdrawal £25,000 - £150,000)

To invest in your future you could decide to draw a deposit to place against a Buy-To-Let property. The rent that you receive could pay for the extra mortgage if treated as a business and let through an experienced agent. You may have acquired enough equity in your existing property to finance all of the purchase without taking a second mortgage. You could be a property tycoon before you know it!

Holiday (common withdrawal £2,000- £5,000)

Fun in the sun has been a common reason to withdraw equity. If you're going through the stress of re-mortgaging why not give yourself a break to get over it and treat yourself to a beach full of nearly naked men or women.

Holiday Home Abroad (common withdrawal £30,000 - £100,000)

How many times have you returned to base, wishing you were still there? Why not make your dream a reality and use your equity to buy a villa or apartment abroad in Spain, Portugal, America, Australia - the choice is yours. Next time you're on holiday look at the local estate agents and find out how much it would cost you.

Buying a Car (common withdrawal £8,000-£30,000)

Some flexible mortgage facilities allow withdrawal of funds on a reserve account. This could allow you to borrow money for car purchase, with lower interest than you could get at any dealership. You would then decide over how long you wished to repay the car element of your mortgage and increase your monthly repayments accordingly.

Clear Old Debts (common withdrawal £1,000-£20,000)

If you feel like you have a heavy weight around your neck why not use your home equity to ease your monthly situation?

This prime opportunity could allow you to transfer all your debts to one place. A fresh start could reduce your monthly commitments and reduce the interest you pay to your lender.

Personal loans, hire purchase, store and credit cards all traditionally charge higher interest rates than mortgages and loans secured against your property.

One of the best aspects of withdrawing equity from your main residence is the fact that the money is tax free. You will not have to cough up a penny to HM Inland Revenue plc. 

Remember that all money does have to be paid back at some point and interest rates could alter after withdrawing funds. I would suggest that you look at your budget closely before taking on extra borrowing. The increase in your monthly payments could be balanced with a money saving switch to another lender. Remember to look for any redemption penalties.

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