What is a Re-Mortgage/Secured Loan?
If an individual has a property which is worth more than what is secured against it, this excess amount is known as equity. It is sometimes possible to release this equity in order to clear off your debts in one go by way of a re-mortgage or secured loan. Like a consolidation loan, the debt is brought together into one payment, although through a re-mortgage or secured loan the debt would be secured against your property.
There are three main ways of releasing equity in a property:
- Additional borrowing from your existing mortgage company
- Re-mortgage to a new lender with a larger borrowed sum
- Take a new loan secured against your property and keep your existing mortgage
We’re here to help you
If you believe that further borrowing against your property is going to be the best option to clear your debts, we will first go through all of your incomings and outgoings prior to putting you in touch with a fully licensed broker who will be able to investigate your various options and attempt to place you with an appropriate lender.
Advantages of Secured Borrowing
Lower Monthly Payment – as your debt is often paid over a longer period, your monthly payments can often be vastly reduced.
One Single Payment – as your debt is paid off in one go, you will only be left with one monthly payment which should make budgeting much easier.
Credit Rating Remains Intact – Unlike many other solutions, your credit rating will not be affected as you will not be required to miss payments to your creditors.
Important
Disadvantages of Secured Borrowing
Pay More In Total - as it is likely that you will be taking the debt out over a longer period of time, it is likely that you will pay more money back in total.
House At Risk - your house may be repossessed if you do not keep up with your payments on either your mortgage or on any loan secured against it.
For a no obligation telephone consultation, call us FREE on 0800 622 6480
You should think very carefully before securing a loan on your property as your home may be repossessed if you do not keep up with your payments. It is advisable to speak to a Financial Consultant about your options prior to making any decision.
