Should I Remortgage?

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 indepth discussion contact our Debt Consolidation advisors today on 0808 131 0037.

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.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERM OF DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

For mortgages and re-mortgages the overall cost for comparison is 8.5% APR variable and for secured loans 14.5% APR variable. The actual rate will depend upon your circumstances. Ask for a personalised illustration. A broker fee may be payable on completion, and will depend on your circumstances. For mortgages and re-mortgages this fee is typically between 0% and 3% of the gross mortgage amount, subject to a minimum of £2,495 and a maximum of £3,995. For secured loans, the fee is typically between 0% and 10% of the loan value.



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DebtConsolidation.co.uk is a trading name of Ask Finance Ltd which is registered in England and Wales (company number 4229724), Jackson House, Sibson Rd, Sale, Manchester, M33 7RR. Ask Finance is licensed under the 1974 consumer credit act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.

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