There are many different reasons why people choose to remortgage and release equity from their home. It is often in order to undertake an extension or remodel their home but there are various other ways people choose to spend the money - perhaps to start a business or use as a deposit for a buy to let property. One of the reasons you may choose to remortgage is in order to help fund your children’s education.
The cost of sending children to a private school is ever increasing with it now costing on average over £30,000 a year for a child to board and more than £15500 a year to send a child to a private day school. When it comes to university, from Autumn 2017 UK universities can charge students up to £9250 a year in fees in addition to the average cost of living for a student (outside London) of around £12,000. Although loans and grants may be available to cover some of the costs, many parents feel they would like to contribute financially towards their children's education.
If you have been paying into a repayment mortgage for many years and/or your house has significantly increased in value then it is likely you have a significant amount of equity in your home which could be released. By remortgaging, it is possible to release a cash lump sum which could help fund some of your children’s education.
Remortgaging your property involves taking out a larger mortgage which will therefore increase your monthly payments. It is important to get advice from a professional, qualified mortgage adviser who will be able to help you weigh up the benefits and costs of remortgaging.
Contact The Mortgage Hut for mortgage advice throughout the South in Southampton, Eastleigh, Winchester, Basingstoke, Andover, Newbury and London or over the telephone.