A remortgage is where you pay off one mortgage and take out another mortgage using the same asset (property) as a security. The main idea behind a remortgage is to get a cheaper/more affordable mortgage repayment or in some cases to release any equity that may be available.
Remortgage can be the cheapest form of borrowing. You can get a loan at much lower rates than would be available in an unsecured loan. It can give a cheaper monthly payment but if paid over a longer period of time it can be much higher.
If using a remortgage to release equity, it is possible to use money raised from the remortgage to settle any outstanding debt. In some cases you may even have money left over from the remortgage after repaying your debts. In other cases there may not be any money left over.
If your remorgage cannot release enough money to settle your debts in full it is still possible that your creditors might accept a reduced amount to cover all your debts. It is not uncommon that creditors would reduce the total amount owing and take a lump sum as a settlement of the debt. We have agreed many settlements like this.
Remortgaging is something you need to consider carefully. It’s important to get as much information as possible before you make a decision. Some areas to consider are:
If you’re considering a remortgage to repay your debts, before you do anything else, you should speak to us. We’ll be able to assess your situation and see if there are any other options available to help you deal with your debts.
You can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. Click here for more information.
We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan.
Please note: From time to time we may refer you to other services providers or charities such as the CAB.
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