Remortgage House To Pay Off Debts / Additional Borrowing On Mortgage To Clear Debt

Can you remortgage to pay off debts? It is important to note that you are not paying of or clearing your debts but you are restructuring your debts to make it more manageable, get expert help and advice from a qualified mortgage adviser.

Many of us can find ourselves in a debt spiral, with multiple loans, credit cards and an ever growing overdraft. Remortgag in may offer a solution to restructuring your debt and making it more manageable. A remortgage can be used to release equity from your property to consolidate your existing debts into one manageable monthly repayment.

A big advantage to consolidating your debts by remortgaging is mortgage rates are often much lower than credit cards, loans and other forms of short term finance. Another benefit is it will greatly simplify your monthly outgoings, instead of paying multiple creditors each month, you will only pay the one monthly mortgage payment. A drawback to remortgaging is the debt will often be spread over a longer period of time, this may result in lower debt payments month to month, but may well result you paying more over the term of the mortgage contract.

Using a Secured Loan Instead Of Remortgaging

A secured loan is a form of mortgage, and can be taken out as a second charge behind your original mortgage contract. If you have an early repayment charge or other penalties on your existing mortgage, a secured loan (second mortgage) may be an alternative option for you to consolidate your debts using the equity of your property.

We have been helping consumers arrange debt consolidation loans and mortgages for over 30 years. But more importantly, we have access multiple lenders that provide plans to suit most circumstance. For our customers, that means we`re in a position to match you with the deal most suited to fit your individual needs. It`s necessary to find the company that offers the best debt consolidation solution for you. That starts by evaluating your own situation, goals and spending habits.

Let us help - We`re uniquely qualified to do just that. Start by filling out our easy online form and we`ll get you offers from our panel of lenders

Debt Consolidation Options?

Debt Consolidation is a term used by many finance companies today. But are debt consolidation remortgages really a good idea? And can credit counselling really help? There are some things to learn before you jump into any debt consolidation program. We`re here to answer your questions and to get you on the road to best manage your debt, your credit and your life.

Credit Card Debt & Options Credit card debt is arguably one of the most common - and difficult - credit issues to manage. One popular option is to simply buy out all your credit card balances with another credit card (balance transfer), but you are not really taking a positive action with that step.

Types of Debt Consolidation Loans / Mortgages One of the easiest steps to take when credit has gotten out of hand is to hide from the creditors. That`s also the least productive step. Not answering the phone and ignoring mail will not produce debt relief. Effective debt management must be proactive. The most important thing you can do is to take action. But what are the options for an effective debt management solution? The question of which is best depends entirely on your own circumstances, goals and future plans. One option is a credit card debt consolidation loan. You can find these loans from an array of lenders. Be careful to consider the terms before you make a selection. Rates are only one part of the equation. In addition to finding the best interest rate, you should find the consolidation loan with payoff terms that fit your lifestyle. There are two basic types of loans for this situation :

Unsecured Debt Consolidation Loan
Unsecured loans usually have higher interest rates and less attractive terms, because the loan company`s risk is higher. But if you`re willing - and able - to make the payments, the unsecured loan is less risk for you as the borrower.

Secured Debt Consolidation Loan / Debt Consolidation Mortgage
Secured loans require that you put something up for collateral. Be careful before you take this step. Most loan companies will lend you the money if you are willing to put up something of value - your home, for example. But remember that you will forfeit that collateral if you fail to make payments. You`re likely to get a better deal with a secured loan or remortgage, but be sure that you make the commitment to make the payments on time - every time.

Get & Staying Out Of Debt

Remember that your endeavours to get out of debt must be a long-term decision. Consolidation loans shouldn`t be relied upon for a continual fix for poor spending habits. If you have missed payments on your existing debts you may find your credit rating, if you have a bad credit score then your debt consolidation loan or mortgage will typically have less attractive terms and interest rates. Those loans will help you get control of your current debt, but be sure to utilise the opportunities to restructure your monthly outgoings so you are comfortable with your debt repayments . If in doubt of what your next step should be, consider getting in touch with one of our advisers who will be happy to answer any question you may have and discuss the different options available to you. To get started you can fill out our application, we are here to help you get control of your debts.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.