You may have a number of different debts – a mortgage, credit cards, and personal loans – all at different interest rates. The monthly payments may add up to a hefty slice of your monthly outgoings. Remortgaging could consolidate all of these different debts into one lower monthly payment. This can be a good option, but we would recommend talking to an adviser to see if a remortgage is right option for you.
Mortgages are generally at a lower interest rate than unsecured borrowing. By consolidating your credit cards, loans and so on into your mortgage, you could have a more affordable monthly payment, which could make life a lot more comfortable.
While the interest rate will be lower, you’ll be paying off the debt for a lot longer so you’ll pay more overall. You will be securing your debts against your home, meaning if you don’t pay, your home could be repossessed. You’ll also be increasing your loan-to-value, meaning you won’t get the cheapest rates available.
A good mortgage adviser will show you illustrations of each mortgage option, showing how much you will pay over the full term, to enable you to compare mortgages more easily. If you’re going to borrow over a longer period, even a small difference in interest rates could make a big difference to how much you pay overall, so it pays to use an adviser who has access to all the mortgages on the market, even those that aren’t advertised to the general public.
For expert, unbiased mortgage advice, contact Your Mortgage Expert on 0141 471 4545.
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Brought to you by Peter Dean
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Peter Dean has helped thousands of people with quality money advice, through his well-known company Your Debt Expert. Peter is now helping even more people by offering quality whole-of-market mortgage advice.