Remortgage

Remortgage Help and Advice

A remortgage usually, but not necessarily, involves switching to a new lender without moving home.

A home owner with existing financial difficulties might consider a remortgage to:

• Reduce their monthly mortgage payments - by taking advantage of lower interest rates or by extending the period of their mortgage.
• Consolidate their secured and unsecured debt into one loan at lower interest rates.
• To repay debts such as personal loans or credit cards.

What should you consider when remortaging?

As with Consolidation loans, it is vital that you consider the relative rates of interest for the whole period of the loan, not just the first few years.  Other questions you should ask yourself or any potential lender regarding both the existing and prospective loans include:

• What are the monthly payments and can I afford them?
• What is the total cost and duration of the loan?
• Are there any penalties for early redemption of the loan?
• Are there any restrictions preventing a subsequent remortgages?

In addition, remember there may be upfront costs involved in switching mortgages, including valuation fees, arrangement fees, legal fees and so on.

Particular care should be taken if you are increasing the level of your secured debt as failure to make the increased payments may cost you your home.

Remortgages can be of use to individuals in financial difficulties if they genuinely reduce the costs of borrowing, without significantly increasing the risk of losing your home; however, as indicated above they do require careful consideration, particularly of the small print.

Although The Debt Help Line does not itself provide mortgages, we do have appropriately qualified contacts with various financial institutions, finance brokers and independent financial advisors who can provide the appropriate assistance.

Call us on 0800 88 18 274 to find out how we can help at the Debt Help line