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REMORTGAGE
“Release some of the equity in your house and clear your debt”
As house prices have risen throughout the UK, more and more people find themselves with equity locked into the value of their property. Equity is were the value of your house exceeds the value of your current mortgage, the excess is your equity.
Where a debtor finds they have many different creditors the payments to these individual creditors each month are often difficult to meet as the accumulated value exceeds the available income open to the debtor.
Through remortgaging, a debtor will consolidate the entire debt into one single debt and then pay a lower single monthly repayment to the creditor, the mortgage lender.
To remortgage your house it is sometimes necessary to move lenders. Selecting the correct mortgage and the best lender is sometimes very difficult to do, as there are so many lenders with varying mortgage deals on offer.
Finance Inc will advise you within this process and help direct you to the very best deals within the remortgage market. We will assess what it is you need from the remortgage and the level of repayment you can afford. We will help you get the best deals by obtaining a lower rate of interest than you are currently paying and by securing additional funds from your mortgage to pay off your debts.
Suitability for remortgage
If a person is unable to obtain the level of unsecured funding to clear their debts then a remortgage will help them achieve this to clear their debt.
It is suitable for any level of debt but usually given more consideration when the debt is over £20,000
Advantages
- Overall lower monthly repayments easing stress levels associated with your debt
- Single Payment makes managing your finances easier
- All other creditors are paid off in full
- Credit rating not affected in any way
- No potential for legal action
Disadvantages
- Equity must be available in the house
- A lender may not increase lending if there is a risk of non payment
- Increased interest added to the value of your mortgage
- Although overall payments are decreased, your mortgage payment will rise
- Unless house prices continue to rise, you may use up the equity in the house and it may not be present should spending continue and a debt position occurs once more in the future.
- Payments on your mortgage must be kept up
Finance Inc is well positioned to advise you as to whether the remortgage solution is the best option for your circumstances. We can also guide you through the maze of mortgage lenders and deals available throughout the UK. We have the necessary experience to assist you in bringing your financial circumstances under control.
Your circumstances may not suit this style of debt management, Finance Inc have other suitable solutions for you to consider.
See Debt Management, IVA’s (Individual Voluntary Arrangement) , Loan options and Bankruptcy
For frequently asked questions regarding mortgages and remortgages, please click here
“a remortgage is possible where equity exists in the value of your property.
Equity is the value of your house above the value of your mortgage.”
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