Remortgaging to consolidate your credit card debt.

Household debt is rising, in fact the Office for National Statistics advises that the average household currently has debts of £11,800. With it being estimated that on average, around a quarter of annual income is spent to service loans and credit card debt, it’s no wonder that many home-owners are seeking to remortgage to consolidate debt and lower their monthly out goings. 

Remortgage rates remain at record lows and many home-owners who owe money on higher rate credit cards and loans, are choosing to remortgage and combine debt into one lower rate month payment.

Those who have credit card and loan debt, in addition to mortgage payments, can release equity to combine everything into one lower interest rate under their mortgage. By consolidating all debts monthly outgoings can be lowered into a more manageable amount.

If you want to consolidate your debt now is a good time to do so, while rates are set low. To get the most competitive rate available to keep your payments low, you are advised to search through every lenders’ range market wide.

There are over 100 mortgage lenders in the UK. Each has a range of fixed rate and variable remortgage products with rates, fees, criteria and LTVs set at varying levels.

There are hundreds and hundreds of re-mortgage products available in the market at any one time. This situation is further complicated by the fact that lenders continually update their ranges by new launching new deals and withdrawing product.

Failure to enlist the services of an independent mortgage adviser can mean missing out on the most competitive offer. At Deal Direct we can help you to both increase your mortgage size to consolidate debt and switch to a lower rate offer than you are currently on.

You should be aware that debt consolidation is not always the most suitable option. Consolidating debts must be carefully considered. It will usually mean more interest over a longer repayment term, and there may also be early repayment penalties on your current mortgage. You should therefore think very carefully before securing other debts against your home.

There are other ways to manage debt such as free debt advice charities, you can find out more by contacting the Money Advice Service - these services may be more suitable for you. 

For advice and a low rate quote call 0800 048 8828.