Debt Consolidation Remortgages

Managing your monthly finances can be very overwhelming when you have several bills payable, including your mortgage or remortgage payments. You may want to consider consolidating all your debts into one manageable monthly payment. The option gaining popularity in the UK today for managing your debts is by taking out a debt consolidation remortgage.

If you are not yet familiar about this option, a debt consolidation remortgage primarily helps reduce your monthly payments by cutting out your monthly outgoings. These cuts could be as much as 50% - 60% depending on what remortgage deal you choose. Just ensure that you take out the deal that best suits your needs, giving you significant benefits. Whichever remortgage option you take out, it should help alleviate any financial pressures you are currently undergoing.

So how does a debt consolidation remortgage work? This loan primarily aims to cover all the debts you have acquired over the years. These debts will be merged into a single debt and your debt consolidation remortgage provider will manage all your debts on your behalf. They will make the payments to all your creditors, and you will just make one monthly payment to your provider.

There are several reasons on why you take out a debt consolidation remortgage. Most people getting this loan option have taken a lot of unsecured loans or have lots of money on credit cards. Interest rates on these types of loans are usually high, which can become unmanageable in the long run. To efficiently manage these debts, the best option is to take out a debt consolidation remortgage. If you think that you have taken a lot of unsecured loans, then this option is best for you.

However, bear in mind that interest rates for a remortgage may be slightly higher than other types of mortgage. Just be cautious when taking out this type of loan as you might end up with a longer repayment term. A debt consolidation remortgage is generally more suited for people who are looking for short-term reductions on their debt repayments. Also remember that your debt will be secured on your home, so always ensure that you can afford the terms of repayment. It is also best to take your time in choosing which lender who can provide you with the best remortgage deal. Be aware of any additional fees as well, such as exit arrangement fees, early repayment charges, legal fees, and valuation costs.

Given the increasing popularity of debt consolidation remortgage, lenders offer very competitive deals. All you need to do is choose which type. Money Beacon can assist you in deciding which remortgage type offers the best benefits, by getting you in contact with one of their partners. In turn, Money Beacon’s partners can discuss with you over 9,000 deals to choose from. In fact, Money Beacon can even give you a free no obligations quote. All you have to do is fill out a short online form on our website. So, why not try it now?