Disadvantages
Should you re-mortgage over a longer term than the remaining number of years on your debts, even though you may be able to obtain a lower monthly repayment, you will probably end up paying more back over the long term.
By securing personal debts onto a mortgage you will be securing hitherto unsecured debts. This will mean in the event of not being able to maintain your mortgage, you could have your home repossessed, whereas under most secured debts the worst that would happen is that your creditors would take you to court for non payment and possibly take out a County Court Judgment.
By using spare equity in your home to repay debts you will be putting yourself at greater risk of having negative equity, if house prices fall. This could prevent you from re-mortgaging or moving in the future.
By reducing your monthly repayments, and clearing your debts you may just simply go out and take out fresh personal credit –leading to a spiral of debt.
Although monthly repayments may be affordable at the outset, once a preferential initial rate comes to an end, the monthly repayments may become unaffordable and you may find it difficult or impossible to find another cheaper rate at the time.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
How can you find out if re-mortgaging would be an option?
Simply fill in our enquiry form and we will call you back ASAP, or alternatively call us on FREEPHONE 0800 970 4882. You can also Click Here to visit our remortgage service site.
