Re-Mortgage Advice

If most of your income is used to pay off your debts and you have significant equity in your property, you may consider releasing some of this by re-mortgaging your property. Before taking this course of action you should seek re-mortgage advice to ensure that it will achieve the desired goal. Re-mortgaging has become popular over the last decade as house prices have risen and the corresponding equity has risen. Re-mortgaging is not a light decision, however, and should only be pursued after due consideration has been given to it. By re-mortgaging your home, you are effectively lengthening the time it will take before you actually own the property and because the re-mortgage is secured on your property, it is at risk should you fail to make payments as they are due. Your current lender may offer you a preferential rate for re-mortgaging through them, or you may be able to get a better deal elsewhere.

For the best possible re-mortgage deal, you need to shop around. The re-mortgage market is very competitive and lenders may offer incentives such as cash-back or introductory discounts. The main issue with any re-mortgage, however, is the interest rate. If you can re-mortgage at a lower rate than your existing mortgage, you may save thousands of pounds in interest while releasing equity to repay other debts.

Depending on your circumstances, a re-mortgage could be in your best interest as it would enable you to release any equity and use this to repay other debts. There are risks involved, however, since a mortgage is a long-term commitment. A very small change in interest rates can make a huge difference over the mortgage term. Re-mortgaging will extend this term and increase your exposure to fluctuating interest rates.

Obtaining professional re-mortgage advice is an absolute must, whether you are re-mortgaging to simply release equity or as part of an Individual Voluntary Arrangement (IVA). It is vital that you maintain repayments to your mortgage as your home would be at risk if you failed to make them on time.