Related Posts with Thumbnails

Consolidate your debts by remortgaging

As the global economic crisis rolls on, signs of life in the market are yet to reach the general consumer, and cut backs across much of the world have left nearly all of us feeling the pinch. One of the biggest advantages of the credit crunch and the drop in house prices has been the drop in interest rates, and in the UK interest rates, for example, have sat at a record low of 0.5% for almost three years now.
If you’ve got savings, it’s not a good time for you, but if you have a mortgage, you should be paying the lowest repayments of your life.
As a result of the increase in cost of living for many, there has also been an increase in debt levels, with more and more families turning to their credit cards as a way of paying for things they can’t stretch to with their wages. Unfortunately this creates a vicious cycle involving paying high levels of interest, and falling further into debt each month.
At, we specialize in remortgaging homes, and help customers every day with their various remortgaging options.
One of the most common questions we receive relates to consolidating debts in the form of a remortgage. If you bear in mind that you are likely to pay around 20% interest on your credit card debt, but no more than 5% interest on your mortgage it makes sense to try and tie all your debt up in your remortgaging process. Obviously your home is vitally important, and borrowing money against it can lead to repossession, but if you are smart about the way you borrow you could leave yourself better off in the long run.
By remortgaging now and taking advantage of the continued low interest rates you can make sure your paying the lowest amount possible for your home repayments, and that you are consolidating your debt into the cheapest possible monthly payments as well.
By remortgaging your home to consolidate debt you are able to give yourself a fresh start, to budget properly so you don’t end up in debt again and to make your money work for you, by not paying over the odds for the money you borrow.


Post a Comment