Over the last few years we have seen a number of property booms across the world, but no more so than the UK which has seen a concerted rise for the last 3 or 4 years.  As the average price of a house in the UK creeps over the £200,000 mark there are many people sitting on massive paper profits on their homes.  How can you take advantage of the rise without putting your house in jeopardy?

Many people are now looking at the potential for re-mortgaging or taking out a second mortgage on their home, in order to realise some money from their investment.  While you still need to very careful that you do not over extend yourself with a new mortgage / second mortgage, there is the potential to take out a significant amount of money without causing too much trouble.

In a perfect world many people would have been looking to remortgage, i.e. pay off their old mortgage and take out a larger one against their home.  Unfortunately, as we have seen interest rates rise it is probably not the best option, as you would effectively be trading in a lower interest rate for a higher one.  This is where many people decide to take out a second mortgage at a higher rate - with the option of remortgaging the two together when rates fall.

However, you do need to be aware of the risks of remortgaging, and the fact that your home may be at risk if you do fall behind with payments, etc.  There is no such thing as a free lunch in the financial world, although if you do not over extend yourself, there is a great opportunity to extract a little of the rise in the value of your property, and treat yourself!