Finance home re finance mortgage debt consolidating
If you expect the bank rate to go down then you could be getting a good deal, but if it goes up then you could be risking higher monthly repayments.Offset mortgage: With an offset mortgage, your mortgage and savings account are combined, and the money you have in your savings account is counted as a temporary overpayment towards your mortgage, which could save you thousands in interest.
While mortgages will offer far lower interest rates than credit cards and an improvement on personal loan rates, that doesn’t mean that remortgaging for debt consolidation will save you money.
Moreover, you may also put your home in jeopardy, as it will be secured against the debts on your credit cards and loans, as well as your mortgage.
In essence, avoid remortgaging for debt consolidation and see if you can pay off your existing debts separately instead.
You will normally have to pay a mortgage exit fee if you remortgage, but the savings could be worth it Improving the remortgage offers you’re likely to be accepted for comes down to your personal circumstances and the loan-to-value (LTV) you apply for.
The less you need to borrow, the more likely that better deals will become available to you.