Remortgaging to Solve Debt Problems

Many people use equity in their property to solve debt problems

"YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE"

If you have debt problems then one of the ways out may be to remortgage your property to release equity in it to clear debts.

Why would you remortgage?

Mortgages are generally at a lower rate of interest than other types of loans. They can also be over a long period of time. This means you can free up potentially large amounts of cash to clear existing borrowings that are at a higher rate of interest.

What are the downsides of remortgaging?

Your home is at risk if you cannot make the repayments. What you should ask yourself is have you solved the underlying debt problem - if you have not then you could be putting your home at risk.

You should also remember that remortgaging will invariably mean it takes longer to own your home. This might mean you need to retire later or work harder to earn more.

If you remortgage say 100% of the current value, then house prices go down, you will have negative equity. Negative equity means your house is worth less than what you owe on it and if you wish to move house then you will only be able to do so if you can make up the difference between its sold value and how much is outstanding on the mortgage.

Can DCM help find me a mortgage if I have a bad credit rating?

Yes. And if a remortgage is not the best solution we'll tell you.

Is a remortgage the best option for YOU? Don't risk biased advice from lenders - ask us first.

Call now on 0845 120 1 120