Quite simply a remortgage enables you to switch mortgage schemes, usually to a new lender, part way through your existing mortgage term. Aside from securing a better cheaper deal, there are other reasons why a remortgage could benefit you financially.

Your home may have increased in value since you took out your mortgage and you may therefore have positive equity in your property. Many people remortgage to release some of that equity as it can be the cheapest form of borrowing – you may then wish to use some of this equity for:

• Debt Consolidation. Interest rates on mortgages are typically lower than rates charged on other types of personal finance such as car loans and credit cards. Any loans that are unsecured and are then subsequently added onto the mortgage balance will accrue interest over the term of the mortgage. Remortgaging and merging all your existing debts into one manageable monthly payment at a lower rate could ease the financial pressure. Adverse credit mortgages are also available if you have mortgage arrears and loan arrears.
• Home Improvements. Whether you are planning to build an extension to your home, carry out extensive redecorating or redesign your garden, a remortgage can help you carry out those home improvements and once complete, may enhance the value of your home.
• Clearing Financial Problems. A remortgage can help people sort many worrying financial problems including clearing CCJ ’s (County Court Judgement), cleaing mortgage arrears and /or loan arrears or IVAs, preventing repossession or bankruptcy or even clearing a tax bill. Any loans arrears or mortgage arrears that are added onto the mortgage balance will accrue interest over the term of the mortgage.

Mortgage Solutions can help you find a remortgage deal even if you have existing adverse credit history. Our select panel of lenders will still consider you for a remortgage if you have a history of mortgage arrears, loan arrears, CCJ ’s or payment defaults – please contact us to discuss your personal circumstances, so that we can find the right product for you.

Need a valuation on your property? If you are considering a remortgage, and are unsure what your property is worth, let us arrange a valuation.

The overall cost for comparison is 6.8% APR

This is intended as a guide only - other criteria may apply, and we can advise on any special terms and conditions which your selected lender may wish to impose at the time of application.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.