Consolidating debt on mortgage
It’s worth bearing in mind that the new mortgage provider you switch to will need to value your property, so be prepared to research the local house prices and make a note of any home improvements you’ve made, just in case they come back to you with a lower than expected estimate.
You will normally have to pay a mortgage exit fee if you remortgage, but the savings could be worth it Improving the remortgage offers you’re likely to be accepted for comes down to your personal circumstances and the loan-to-value (LTV) you apply for.
The less you need to borrow, the more likely that better deals will become available to you.
Continue reading our guide for the facts or call direct the UK’s leading lenders direct.
Whatever happens, it’s good to shop around the market even if you’re not looking to remortgage your property immediately.
As you’re more likely to be paying off your mortgage for a longer period than your other debts, you are also more likely to be paying much more.
For example, if you have debts of £5,000 and remortgage with 4% interest over 20 years, you will pay just over £4,000 extra in interest.
Our guide to remortgaging can help you decide if switching from your current mortgage deal is right for you Paying off your existing mortgage with a new one can offer flexibility, a better deal on your monthly repayments or an opportunity to consolidate your debts.
Remortgaging can also save you thousands of pounds, but it comes down to your personal circumstances.
Regardless, it takes around one month for a remortgaging deal to go through, so it’s a good idea anyway to be ready for it.
With interest rates fluctuating, you may wish to consider remortgaging with a variable rate tracker mortgage plan, or move onto a fixed rate mortgage for stability.
Moreover, you may also put your home in jeopardy, as it will be secured against the debts on your credit cards and loans, as well as your mortgage.