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Remortgage
- A Guide
Simply put, if the current debt position that you find
yourself in is serious but, you have equity in your home, it may be sensible
to restructure your short term expensive debt into long term "cheaper"
debt.
You will need to prepare an accurate personal income and payments
statement and also get a valuation done of the house or property (most
remortgaging companies will arrange this).
This is a powerful debt restructuring technique but it can also be fraught
with difficulty. Sometimes the equity that you thought you had is less,
sometimes the earnings you have are not sufficient for the higher mortgage
repayments.
As all property owners know, getting these things done can take a long
time and can be very frustrating but remortgaging is actually simpler
than buying a new home, because the deeds of the property are already
registered in your name. This makes it easier to take advantages of the
benefits that remortgaging can offer.
In our opinion it is vital that, after remortgaging,
excessive spending is stopped and that you live within your means - the
home may not go on rising in value for ever.
Advantages of Remortgaging
- Avoids formal insolvency,
does not usually adversely affect your credit rating
- Can be quick and easy
- Spread debts over much longer
period
- Removes short term creditor
pressure
- Crystallises the position
- allows you to get on with life
- Usually much cheaper credit
- Lots of products and suppliers
of credit
- Even people with poor credit
ratings can obtain remortgage products
Disadvantages of Remortgaging
- Only suitable if sufficient
equity in the home and you have good earnings
- Can be costly for valuations
and paperwork
- Most lenders will look hard
at your credit rating and if you are in arrears or have poor rating,
may charge higher rates for the new mortgage products
- Is this really solving your
problem or deferring it to a later date?
We have close links to a number of remortgage suppliers and can help
you obtain a remortgage at competitive rates - even if you are in arrears
and etc. So contact us now for a chat about your personal circumstances
or fill out the contact form.
We have close links to a number of remortgage suppliers
and can help you obtain a remortgage at competitive rates - even if you
are in arrears and etc. So contact us now for a chat about your personal
circumstances or fill out the contact form.
WARNING: PLEASE MAKE SURE THAT
YOU THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR
HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE
OR ANY OTHER DEBT SECURED ON IT.
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