What is Re-Mortgaging?
What is Remortgaging?
A Remortgage is basically a loan secured against your property. If you have large debts on loans or credit cards and are struggling to make the repayments, you may want to look at Remortgaging to consolidating the debt and save on paying high interest rates.
By Remortgaging your property you can restructure your monthly repayments to consolidate your finances and have one lower overall monthly repayment. This can be done by lengthening the term of the original mortgage and/or by researching other lenders for a better deal on interest rates.
Is re-mortgaging the best option?
If you do decide to Remortgage, bear in mind that you will be borrowing more money against your property. Calculate exactly how much you need before applying and work out how much equity you will have to release from your property. Failure to keep up repayments could risk you losing your home.
When it comes to selecting the right lender, be sure to do your research first. There are some lenders that will offer you up to 100% of the market value of your property but this will depend on a number of factors, such as how much is outstanding on your property and your credit history. If you have adverse credit such as mortgage arrears, CCJ’s or default notices, your option may be limited to who you can borrow money from.
Ensure that the lender you use is properly regulated by the Financial Services Authority (FSA) before Remortgaging.
The UK Debt Advisor can help you search for the right Remortgage deal for your circumstances. We can suggest a number of reputable and ethical companies to ensure you get the best deal.
Before taking out any type of Remortgage, remember, you are converting unsecured debt into secured debt so you must ensure you can afford the monthly repayments. If you fail to meet repayments your home may be at risk and you will find yourself in even more financial difficulty.
Alternative debt help options
If you want to consolidate debts are struggling to obtain finance, there are other a number of alternatives such as a Bad Credit Loan. These are designed for people with adverse credit, although they usually come with a higher interest rate.
You can consolidate debts without the need for a loan with a Debt Management Plan, IVA or Trust Deed. These solutions will get you one lower affordable monthly repayment and can get you free from debt in as little as three years (depending on your circumstances).
For free help and advice on which is the right solution for you, call our friendly team at the UK Debt Advisor on 0800 043 2027 or use our free call back service.