As well as being a way of reducing your mortgage payments, remortgaging your property also enables you to raise money by releasing equity.

The amount of money you can raise will depend on the amount of equity you have, so obviously you can only pursue this option if the value of your property is greater than your outstanding mortgage.

The attraction of remortgaging is that it is one of the cheapest ways to borrow money, as mortgage rates are typically lower than those attached to other types of loan. But because the loan is secured against your property, you run the risk of losing your home if you do not meet your repayments.

To find out more about mortgages please visit our sister site mortgage guide.