Key Points
- By re-mortgaging and increasing your mortgage you may be able to reduce your monthly outgoings without damaging your credit rating.
- Whilst consolidating your debts onto your mortgage will consume more equity in your property and will probably extend the time over which your existing debts are repaid, you will be able to reduce the number of debts you have to repay each month and probably reduce your overall monthly repayments.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Re-mortgaging: If the value of your property has gone up since you purchased it, or you have been able to make significant overpayments in the past, there is likely to be some spare equity (the difference between the current value and what you owe on it) that could be released to raise a lump sum.
For most homeowners there are three main ways to release this equity:
Further borrowing from an existing mortgage
Re-mortgage for a larger sum by applying to a new lender
Taking out a secured loan
but should you or (in joint applicant cases the youngest of you) be over 55 then you could also look at equity release schemes to raise money to either pay off your debts or at least reduce them and if preferred make no monthly repayments. Find out more To find out more about equity release please link through to our specialist site www.lifetime-mortgages-uk.co.uk
