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Should I Consider Remortgaging to Pay Off My Debts?

When you own a home, remortgaging can help your improve your circumstances if you’re able to obtain a better deal to replace your existing mortgage.

Remortgaging is a method where you replace your existing mortgage with a new one. It entails changing mortgage with an existing mortgage provider or completely obtaining a new mortgage from another provider or lender. Before you thought of considering a remortgage, you should get debt advice first.

Moreover, remortgaging can improve your situation by means of:

  • releasing the equity of your home to access the money tied up on your estate through a lump sum that can be used to pay off your debt for instance.
  • reducing your monthly payments on your mortgage and releasing the money to repay your other obligations

How Remortgaging Works

A mortgage lender will have to assess factors such as your credit file, the value of your estate, and the amount you’re borrowing.

When you have arrears with your current mortgages or any other debts that affects your credit file, this might prevent you from getting a good mortgage deal.

Also, if you’re on an existing mortgage such as a fixed period of three years, you’d likely be paying an early redemption charge once you remortgage.

Factors to Consider Before Remortgaging

You must carefully weigh in your options before you consider remortgaging. If you don’t know much about, you can contact us for advice. Also, there are factors that you need to consider:

  • Interest rates
  • Terms that you prefer
  • The amount you’ll pay for the new mortgage each month
  • The type of mortgage that works for you – fixed or variable mortgage
  • Fees and costs for remortgage
  • how can it improve your circumstances

There are risks during remortgage; thus, you should contact us for help and advice. We can help you evaluate your situation and find out whether remortgaging would help you best.

You can get free advice using our online advice tool or call us on 0800 193 1024.


Commonly Asked Questions on RemortgagingĀ 

Can you help me with a remortgage?

We can help you shed some information should you wish details on the remortgage to help you pay wit debt payments.

Can I remortgage while I am in debt?

If you’re falling behind payments on your debts, it can affect your credit file which can make it difficult for you to get a good mortgage offer.

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