Debt Consolidation Remortgage
Updated 24th November 2021.
Debt Consolidation Remortgage Advisors.
Our Mortgage Experts Online accredited advisors are specialists in debt consolidation remortgages. Our remortgage experts will help you to find the right mortgages on the market to meet your specific requirements.
From big high street banks and building societies, to smaller more niche mortgage lenders, there is a lot of choice out there. subsequently, this may feel completely overwhelming to you and you may have no idea where to start.
We can offer you guidance and help you navigate the complex world of debt consolidation remortgages.
The debt consolidation remortgage brokers we work with are whole of market and offer completely unbiased advice, ensuring that you get the absolute best deal available.
Scroll down for more information and FAQ’s
Debt Consolidation Remortgage Topics.
- Can you remortgage to consolidate debts?
- How does a debt consolidation remortgage work?
- Can I get a debt consolidation remortgage with bad credit?
- What can I remortgage for?
- Can I remortgage if im on a fixed rate?
- How much could I borrow on a debt consolidation remortgage?
- I’ve retired can I get a debt consolidation remortgage?
- Speak to a debt consolidation remortgage advisor
Can you remortgage to consolidate debts?
When taking a remortgage for debt consolidation, you will be using the equity built up in your property to clear any secured/unsecured debts.
There are several reasons to do this, some people like having just one monthly payment. Generally, interest rates for mortgages are much lower than for credit cards and hire purchases.
The flip side is now the amount of the debt is secured against your property and not unsecured, this means if you don’t make the payments your house could be at risk.
How does a debt consolidation remortgage work?
Most remortgage lenders will discount the current debts from affordability. however, there are some lenders who will still include the monthly commitments and very often this makes the new loan unaffordable.
In this case, speaking to one of our mortgage experts will ensure you are placed with the best lender for your circumstances.
The aim of the remortgage is to lower your monthly payments.
The mortgage lender will want to check the following.
- Credit profile
- Debts being consolidated.
- How much you need to borrow.
- New loan to value
- Debt to income ratio
- Reason for the debts.
Can I get a debt consolidation remortgage with bad credit?
Generally, if you have previous adverse credit (defaults, CCJs, missed payments etc.) then remortgaging is still a good option. However, the interest rates will likely be higher.
Your advisor may be able to execute a product transfer of your current mortgage on your behalf, or alternatively look at second charge loan options for the debt consolidation.
Your remortgage advisor will be able to give you all the options. To read all about bad credit mortgages click here
Compared to standard remortgages, bad credit remortgages will take longer to be approved. However, your mortgage expert will be able to confirm likely timescales from the outset.
If your debts are becoming an issue you can speak to Citizens Advice click here
What can I remortgage for?
If you can consolidate your debts, this can work out to having a lower monthly figure to pay each month.
Most people find that only having one monthly payment can make finances easier to manage.
It can be stressful if you have lots of payment each month, especially if you have not set up direct debits to pay them.
Typical unsecured debts people want to consolidate.
- Credit cards.
- Mail order accounts.
- Payday loans.
- Hire purchase.
To find out how one of our remortgage experts can help you, please either fill in the quick enquiry form on our homepage or call us on 0300 124 5655
Can I get a remortgage if I am on a fixed rate?
Yes, it is highly likely that you would incur some early repayment charges. Ordinarily, this is a percentage of the remaining mortgage balance. Lenders may also have a mortgage exit fee.
Our remortgages expert will look at all the figures and advise you if it make financial sense.
Sometimes there is no other option but to remortgage whilst in a fixed rate period, before you do, your advisor will explain all the costs involved.
How much could I borrow on a debt consolidation remortgage?
In this case, the maximum loan to value for a debt consolidation remortgage is 90%. There are only handful of lenders working in the 90% loan to value sector.
Most lenders will be operating between 75-85% loan to value for debt consolidation remortgage.
Some mortgage lenders will have a debt-to-income ratio, so depending on the amount of your debts and how much you earn, you could automatically fail their criteria.
The debt consolidation remortgage advisors we work with are extremely knowledgeable in the debt consolidation sector.
They know each debt consolidation remortgage lenders criteria and will be able to advise on the best course of action for your individual circumstances.
I have retired, can I get a debt consolidation remortgage?
Yes, this will depend on several other factors, such as
- Current age.
- Credit profile.
Any lending which involves lending to people in retirement has more checks to ensure that the mortgage is affordable and not putting the client into financial strain.
Some lenders limit the maximum age of the client to 75, there are other lenders which have no maximum age.
Equity release might also be an option. To read all about equity release or life time mortgages click here.
Speak to a debt consolidation remortgage advisor.
There are many lenders available ranging from high street to specialist lenders. Most people go to their own bank, get declined or cannot borrow what they need – just because one lender has declined you, don’t give up.
Our remortgage experts will look at each case before deciding which lender is right for you and your individual circumstances.
All the mortgage brokers we work with are whole of market and offer unbiased advice.
They will have access to all the specialist lenders to really enhance your chances of achieving the mortgage you need.
The remortgage brokers we work with have experience in dealing with all aspects of debt consolidation remortgages and importantly using the whole of the market to access the very best deals available.