Re-Mortgaging Is re-mortgaging right for me?
Yes, if your circumstances meet all these requirements:
- You are struggling to meet your monthly debt repayments.
- You own your own property.
- There is sufficient releasable equity within the property to settle your
unsecured debts in full.
- You can afford the higher re-mortgage payments.
No, if either:
- Your unsecured debts are unable to be settled in full via a remortgage.
- If you cannot afford the re-mortgage payments.
Re-mortgaging can clear your unsecured debt by borrowing money against your home.
There are many reputable lenders who will lend up to 100% of the open market value of your property, but this decreases depending on your credit rating. Generally speaking, the more adverse credit you have, such as mortgage arrears, CCJs or default notices, the lower the percentage you can borrow will be. The interest rates you will have to pay will also depend on your credit rating.
If you do intend to re-mortgage your property, you should ensure that the lender is regulated through the Financial Services Authority (FSA).
You should also ensure that you are able to afford the monthly repayments. There
is no sense in converting your unsecured debt into a secured debt, only to find
that you cannot maintain the payments. Further more, this could become extremely
serious, as your home will be placed at risk should you fail to keep up the repayments
on any loan secured against it. You should also take into consideration that interest
rates could easily rise. By taking professional advice at this stage of the consolidation
process, you allow yourself the best opportunity to avoid any future financial
problems, which may arise out of an ill-considered decision.
Debt Help UK are able to introduce you to some of the largest financial institutions
in the country, who will advise you on the best deals available for your particular
financial circumstances. They are obliged to be completely transparent about their
rates of interest, their charges and any penalties that may apply for early settlement.
Call free on 0800 088 7502 to find out more or get help with applying for a Re-mortgage by filling in the form below.
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