If you are at the outside the contractual tie-in of your current mortgage deal then it is almost certain you would benefit from at least investigating if there are cheaper deals available to you.
According to Money Saving Expert, Martin Lewis, not being on the correct mortgage for your circumstances in the biggest waste of money in many households.
Debt Consolidation by Remortgage?
A remortgage can be an effective way to consolidate many unsecured debts while refinancing your property. If you have overdrafts and credit card debts, then it is likely they will be a high APR. A Debt Consolidation remortgage will reduce your outgoings as it will to include these debts at a much lower interest rate. You are would need to have enough equity in your home to cover debts you want to consolidate, plus at least 10% of the value of the property.
Even if you already have an additional secured loan against the property, this too can be consolidated with the unsecured debts into the mortgage.
A remortgage is a long term financial commitment which means there will be benefits and disadvantages which come with remortgaging your home.
Below gives you an overview, but for a more in-depth discussion contact our debt consolidation advisors today on 0800 048 3674.
Remortgage Advantages:
- Your debt is spread over a longer period
- No pressure from creditors as you can pay off unsecured debt with your remortgage.
- Your credit rating is not adversely affected.
- Better interest rate.
- Even if you have been turned down for credit in the past, you should still be able to remortgage with a bad credit history,
Remortgage Disadvantages:
- You need to have sufficient equity in your home.
- If you have a bad credit rating you may have to pay a higher interest rate than those with a lower interest rate.
- You will be paying back your credit over a longer period which might cost you more.
- You must make sure that you can afford the new mortgage plan, as failure to keep up on repayments means your home is at risk.
Whether you are in need of debt consolidation or not, please get in touch for a free financial appraisal so you are better equipped to make the most informed choice.