When you decide to remortgage, you may think that it is a good opportunity to increase your mortgage amount. If you have equity in the house, then chances are that you could be lent more money and so it is not unrealistic to consider it as option, but you need to think carefully.
Firstly consider whether having a higher debt will benefit you. Calculate how much more you will have to pay back each month or if you are remortgaging for a lower cost, whether borrowing extra will defeat the object of that.
You need to think about whether borrowing extra against the mortgage is the cheapest option for you. You may find that if you borrow the money using a different type of loan that has a shorter term, it may be cheaper. Do some calculations to find out which way might be the cheapest way to borrow the money as this could save you a lot.
It is worth also considering whether you should borrow extra at all. Have you just decided to borrow the money because you think that you can? Is that a good reason for borrowing? If you are going to use the money to invest in something that will make more than you will pay in interest, then it could be worth while. You may want it for a house deposit for an investment property for example. If you are getting it to pay for something such as new furniture and carpets or home improvements, then consider whether it is better to wait and save up rather than borrow the money. Calculate how much the borrowing fees will add on to the cost of the items and decide whether it is really worth it.
It should not be a quick decision as borrowing money is always costly. You need to consider what you will gain and whether that will be worth the extra cost. Think about the amount that you are borrowing, what you are using it for and whether you would rather not have that extra debt. It can be a burden, not just financially and to increase the debt that you already have may be stressful in the future. It is also worth doing some research to find out whether there are cheaper ways to borrow the money as this could be a better way to get it.