Remortgage to pay debt
Release equity to repay debt
Many customers remortgage to raise capital to repay or refinance debt.
Remortgages are often one of the cheapest ways of raising cash for debt consolidation, however, you should carefully consider the implications of securing the unsecured debt, such as credit cards and unsecured loans, against your home or other property you own.
You are in effect converting unsecured debt into a secured debt, resulting in you home being at risk of repossession if you do not keep up repayments on this new mortgage or other loan secured against it.
Additionally, whilst refinancing debt by way of a remortgage can reduce your monthly commitments, you can actually end up paying more back in mortgage interest over the term.
You should certainly consider closing those credit card and loan accounts completely to ensure that your situation is improving and that you do not use those credit facilities again - thus building up more debt.
Debt consolidation remortgages or loans can provide the right solution, in certain circumstances and our impartial mortgage experts will discuss the pros and cons of doing this.
To speak to one of our mortgage advisers call 01785 878 555 or fill in this form opposite and one of our friendly team will call you to discuss your individual remortgage requirements.