More competitive refinance mortgage rates are needed by home-owners.
Home-owners are looking for the most competitive refinance mortgage rates from lenders in an effort to cope with mounting monthly costs.
According to figures from equity release brokers, three quarters of equity released in 2011 was used for bill and debt payment.
The figures show that in 2011, 36 per cent of home-owners who released equity by remortgaging, used the funds to meet their mortgage payments compared to 31 per cent of home-owners who did the same thing in 2010.
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The figures also show a 1 per cent increase in home-owners using equity release to help struggling family members. In 2010, 22 per cent looked for the best refinance mortgage rates to help family members compared to 23 per cent in 2011.
Some home-owners remortgage to provide house deposits for other family members however, a growing number are remortgaging to provide a cash reserve to help with the payment of debt and meet the costs of soaring utility bills. Figures show a 14 percent increase from 2010 to 2011 in the number of home-owners who remortgaged for this reason.
Steve Wilkie, MD of Responsible Equity Release commented saying that high debt and high unemployment have stretched many people's incomes to breaking point and, while 5 or 6 years ago the money released through re-mortgage finance was used to improve the quality of retirement, today a growing number of remortgage deals are used to make ends meet.
Regardless of the reason for releasing equity, competitive refinance mortgage rates are essential and those looking for a deal should shop around and compare lenders offerings.
