Alternatives to Remortgaging

Renting, financial restructuring & negative equity

Renting a room in your property

If you live in a large property and have rooms to spare, letting out a room can provide you with a valuable second income which can be tax-free up to £4,250, or £2,125 if letting jointly. You should make sure you draw up a tenancy agreement for your tenant, setting out agreements on topics such as rent and the dates on which the rent will be paid.

You should inform your mortgage lender if you plan to rent a room out, as they may have restrictions that you will need to adhere to.

Restructuring your finances

If your mortgage repayments are too high and you cannot remortgage, you may want to consider other methods of improving your cash flow situation:

• Downsize
• Consolidate your debts
• Review your bills and see if it would be more cost-effective to switch providers

Negative equity

If your mortgage is greater than the cost of your home, you will be in negative equity. This usually only happens if there is a crash in the housing markets. If you think you may be affected by this, you should talk to a financial adviser to discuss your options.

Get advice on remortgaging from a mortgage expert

Does the Financial Services Authority work?

The Financial Services Authority (FSA) is the financial regulator of financial services in the UK and set rules for companies to follow.

Find out more about the Financial Services and Market Act

The Financial Services and Market Act 2000 is responsible for a number of important changes within the field of financial services and regulation.

Get professional financial advice today

Most financial advice is common sense for most people - don’t spend more than you are making - but the world of finance can be more complex.