A significant proportion of Britons are using loans to repay their mortgages, so they could benefit from remortgaging their property if it means they can reduce how much they pay back each month on their mortgage hopefully enabling them to avoid using a loan to pay their mortgage payments.
Homeless charity Shelter has discovered that almost one-in-five renters or homeowners had borrowed money to cover housing costs, while two per cent had even resorted to getting money from short-term, high cost payday lenders.
While this may keep the wolves from the door for a month or so, ultimately these loans will need to be repaid and you`ll have to find even more money than you would in the first place, so finding a more long term solution may be better.
Shelter`s chief executive Campbell Robb explains that "sky-high housing costs, stagnating wages and the high cost of living have taken their toll", adding that "the economy as a whole might be on the up, but losing our home could now be a frighteningly real prospect for any one of us".
However, remortgaging your home could potentially avert this possibility, as you can get on a new deal that requires lower repayments each month, even if it means paying off your mortgage over a longer period, which may ultimately result in more interest being paid.
Remortgaging towards the end of your existing deal should be relatively straight forward, but if you look for a new mortgage while still in the middle of one, you may have to pay an early repayment charge, so you will need to check through such areas carefully with your mortgage adviser.
At First Choice Finance, our in house advisers can browse our lender panel to find a remortgage deal that`s targeted to your individual circumstances. We start by taking a few details from you, establishing your requirements and providing you with a no obligation personal illustration to consider. Find out more by visiting firstchoicefinance.co.uk or by calling 0333 003 1505 or 0800 298 3000.
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