There are obviously many pros and cons when it comes to deciding to use a re-mortgage approach to pay off debts. In terms of mortgage advice, it really depends on your particular situation. Here are a few different ways to look at the problem.
Pros
One of the benefits to using remortgaging to pay off debts is that you can often borrow at a lower interest rate than you would be able to normally. So it could be a better option than trying to just get a straight up loan some other way. Another benefit is that it’s often a good way to leverage the assets you have to take care of extra cash if you desperately need it in the short term.
Additionally, doing a new mortgage might make it easier to change the rates to be better for your particular financial situation in the present.
Cons
A major downside to this approach is that if you stretch all of your debts over a longer period you will make them cost more overall. Another downside is that using your house as collateral means that if you can’t keep up with payments you will lose your house. This is a bit of a catastrophic situation, especially if you have no other recourse for a different place to live due to not having any other support networks.
Other downsides include that you will often encounter extra fees when you remortgage which could be a serious problem depending on how much they are. These extra fees could also kill a lot of your benefits.
It’s also important to pay attention to whether you have life insurance or not as well since this could also be a factor. Another advantage to doing it this way is that you can take every single individual debt that you have and consolidate all of it down into a single monthly payment that you have some hope of affording. But look at it carefully and it will work.
If you need more info please visit us @ www.mortgageadviceservices.co.uk or call us on telephone number 01332 257 087 for a free quote today. Labels: independent mortgage advisers, mortgage advice nottingham, the re-mortgage process