Debt Consolidation Remortgage
A debt consolidation remortgage uses the equity in your home to pay off existing loans that you may have amassed. This means that you will only have one monthly bill rather than a number of inconvenient repayments.
The main advantage is that a debt consolidation remortgage can usually save you money as the interest rates are often lower than that of your other debts.
This type of mortgage or remortgage is typically used to combine things like unsecured and secured loans, hire purchase, store cards, and credit cards into a single payment.
To recap, the advantages of a Debt Consolidation Remortgage are:
- Reduces monthly payments
- Makes your bill payment easier to manage
- Helps provide equity for other purchases
- You will have a fixed interest rate
- If your interest rate is lower then you should save money
Please be aware that by increasing the term of your repayment, you will typically be increasing the amount that you end up paying each month as well. It’s always best to pay off your debt as quickly as possible.
Another disadvantage is that you could put your home at risk if you fail to make your repayments. Keep this in mind when looking into debt consolidation remortgages. You should also take into account the fees that could be involved, for example, legal fees, arrangement fees, charges for early repayment, exit fees, and mortgage valuation costs.For a free no-obligation debt consolidation remortgage quote please contact us today.
Are you eligible for a Debt Consolidation Remortgage ?Try our simple debt solution calculator to find out.