How to Remortgage to pay off debt? By Chris Morgan
If you’re a homeowner remortgaging can, if the right mortgage is found, improve your situation. By releasing capital and paying off debts, you could re-structure your monthly costs.
A remortgage is when you replace your existing mortgage with a new one. It can mean changing products with your existing lender, or switching to another mortgage lender completely.
You should always get expert Independent Mortgage Advice, to make certain you’re making the right decisions. There are two main ways that remortgaging can improve your situation:
- You can release Equity that’s in your property in a lump sum and use this to repay your other short term debts, like credit cards and bank loans.
- It might reduce your monthly mortgage payment, freeing up money to repay your other debts, like credit cards and bank loans at a faster rate.
How remortgaging works – A mortgage lender will base your application on a number of things including:
- Your credit file, if you have CCJ’s, defaults and arrears you will definitely need specialist independent mortgage advice.
- The value of your house, via an independent valuers report
- How much you want to borrow, being within the lenders re-mortgaging and capital raising criteria
- The purpose of the Equity Release being suitable according to the lenders criteria
- The amount you earn and your current outgoings. They will assess your Income and Affordability
If you’re currently in arrears with your mortgage or any other debts, your credit file will be effected and you will definitely need to seek specialist mortgage advice, as high street lenders are unlikely to be able to assist.
If you’re currently on a mortgage deal that hasn’t ended, for example a fixed term for three years, there’ll probably be an early redemption fee to pay if you remortgage, so an Independent Mortgage Adviser will need to check if this is good advice for you overall.
In principal it is a very good idea to look at consolidating debt, especially in light of any potential economic uncertainty. If you are looking to re-structure your finances or need to raise capital for any purpose then give Unusual Mortgages a call to check if you could improve your situation.
15 Minute Mortgage Assessment –Unusual Mortgages offer a 15 minute free mortgage assessment over the phone to assess your ability to raise capital. We will assess your options across 70 lenders on our research list, from which we tailor bespoke solutions for our clients.
If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not give us a call. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from one the most experienced mortgage brokers in the United Kingdom.
If you require more information on Equity Release, Complex Mortgages, Multiples Mortgages, Buy to let, Self Employed or Adverse Credit Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.ukEdit