Re-value house to get more equity out of it?

[lukemg]

I think you need to think carefully about releasing equity in your house. Granted a mortgage is one of the cheapest ways of borrowing money you need to consider when you will end up paying your mortgage off. Might not be too much of an issue as your quite young but you don't really want to be still paying your mortgage in your mid to late 50's or beyond. When the kids grow up and start Uni you want them and yourself to be comfortable and no mortgage will certainly help.
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IF you haven't got a clue about asset allocation or investing across all your assets then paying the mortgage probably does make sense.
I will be quite happy if I don't pay the mortgage off ever, why would I want to use up my entire IHT allowance with a totally illiquid asset ?

If interest rates do rise high, I will look at the return from offsetting my mortgage debt, alongside returns from other investments and shift accordingly but furiously paying off all the mortgage and then having no easy access to the equity seems a bad idea to me.

[NorthWestPerm2Contr]

IF you haven't got a clue about asset allocation or investing across all your assets then paying the mortgage probably does make sense.
I will be quite happy if I don't pay the mortgage off ever, why would I want to use up my entire IHT allowance with a totally illiquid asset ?

If interest rates do rise high, I will look at the return from offsetting my mortgage debt, alongside returns from other investments and shift accordingly but furiously paying off all the mortgage and then having no easy access to the equity seems a bad idea to me.

Totally get what you are saying there - it's a balancing game on knowing when to take money out and when to put it back in again...

[Spacecadet]

I remortgaged after a revaluation a couple of years ago. Only reason I did it is that it would give me access to the best interest rates, that combined with a very small increase to my mortgage payments slashed the repayment timescale.

[northernladuk]

I remortgaged after a revaluation a couple of years ago. Only reason I did it is that it would give me access to the best interest rates, that combined with a very small increase to my mortgage payments slashed the repayment timescale.

Yup, that's the way to do it. I remember watching one of the money programs a couple of years ago, bit like DIY SOS but with peoples finances with a black guy on it. He was helping an old couple slash their mortgage payments. They didn't seem that dodery and vacant but they wanted help as their they didn't think their mortgage was very good. Very good!?!?!? They were still paying over 9%!!! I nearly fell of my chair when they said it. Wish I could remember how the hell they got in to that state. I can only imagine it was a lifetime fixed or something. Can't help think they had a claim in their somewhere.

[Martin@AS Financial]

Yup, that's the way to do it. I remember watching one of the money programs a couple of years ago, bit like DIY SOS but with peoples finances with a black guy on it. He was helping an old couple slash their mortgage payments. They didn't seem that dodery and vacant but they wanted help as their they didn't think their mortgage was very good. Very good!?!?!? They were still paying over 9%!!! I nearly fell of my chair when they said it. Wish I could remember how the hell they got in to that state. I can only imagine it was a lifetime fixed or something. Can't help think they had a claim in their somewhere.

That is utterly scandolous. Mortgage rates a couple of years ago were not quite at a historic low but certainly on their way down. As you say, it must have been a lifetime fixed or quite possibly they had reverted to the lenders standard variable rate although I can't think of one that was that high.