My Home Move: 57% of remortgaging done to raise capital

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English and Welsh homeowners remortgaged for around £15,000 more in 2016 than they did two years ago, with 57 per cent capital raising, according to My Home Move.

My Home Move found that those in the East Midlands borrowed almost double the amount in 2016.

Meanwhile, those in the East of England, home counties, North West, South East and Wales also increased their debt compared to two years ago.

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My Home Move chief executive Doug Crawford says: “This overall increase in borrowing suggests that homeowners are taking advantage of the ‘cheap’ remortgage deals which have been around for the past few years, and thanks to the Bank of England base rate cut in August, will remain so for months to come.

“With such low interest rates, using a mortgage to borrow money can be a smart move. Our research has revealed that 57 per cent of cases from 2016 were remortgaging to raise capital, compared to pound-for-pound borrowing, suggesting people were looking to consolidate debt, release equity to fund home improvements or to pay their children’s university tuition fees or first-time buyer deposit, as the Bank of Mum and Dad was raided again.”

The firm analysed more than 10,000 remortgage records between 2014 and 2016.