Debt is a manageable part of life for many of us, but when it gets out of control it can put strain on relationships and fill our lives with stress and worry. Multiple high-interest repayments each month can cripple us.
If your debts are starting to turn against you then it’s important to act now. Fortunately, if you own a house, remortgaging could be your answer.
You can release equity in your property as a lump sum which can be used to pay off your expensive loans. Credit cards and some personal loans often charge high interest rates compared to a mortgage, so consolidating your debt into a monthly mortgage repayment can reduce the amount of interest you pay and make life a whole lot easier.
Is it Easy to Get a Remortgage to Consolidate Debts?
Some lenders have limits as to how much equity you can release for debt consolidation; it depends on your income, affordability and credit rating. Our expert remortgage advisors use extensive experience and a specially designed formula to work out whether you’re eligible and which products are most suitable for your situation.
Is it Always the Right Thing to Do?
You could save hundreds of pounds a month – but that doesn’t mean it’s always the right thing to do.
The danger lies in the fact that you’ll be turning unsecured debt into secured debt. In other words, your house could now be repossessed if you don’t keep up the payments, whereas your original debt may not have posed an immediate risk to your property. Having this reassurance allows lenders to offer lower rates than unsecured loans. Also, if the amount of debt you owe is small then remortgaging may not be the best choice.
It’s important to talk through your exact situation with our expert remortgage advisors who’ll be able to work out whether it’s a sensible option for you. It’s our job and our duty to do the best for our customers; we never put our own interests above yours. We can’t by law of course, because we’re professional advisors, but we wouldn’t anyway! We’re in the business of helping people, simple as that.
If we deem that remortgaging to consolidate your debts could land you in even more financial trouble, then we’ll tell you the honest truth. However, if you’re a suitable candidate who could save thousands in interest and be freed from the financial burden of high-interest loans and credit cards, then we’ll help you find the best product and guide you through the whole process.
Will I Be Able to Remortgage if I Have Bad Credit?
Some lenders offer products to those with bad credit, but they’ll likely charge higher interest as they’re taking on more risk. It could still be a good option, but we would have to drill down into your specific circumstances. Book in for a free consultation and we’ll be happy to help.
Will I Always Save Money?
It’s important to remember that although remortgaging to consolidate your debts will likely lead to lower monthly repayments in the short term, it may not always lead to less interest overall. So it’s important to speak with one of our advisors to work out exactly what the financial implications are for your situation.
The pros will often outweigh the cons but let’s make sure that’s the case for you before any decisions are made.
What’s the First Step to Remortgaging?
Despite the dangers and complications, remortgaging to consolidate your debts and credit cards could be a hugely positive step in your life. It could save you from financial stress and allow you the freedom to spend money on things you love.
Your initial consultation is completely free, so you have nothing to lose and so much to gain. We’ll chat through your situation and then do our very best to help you consolidate your debts so you can get on with enjoying life.
