Consolidating debt mortgage

Posted by / 24-Dec-2020 08:52

Once you've figured out what you need your remortgage deal for, be it debt consolidation or saving money, then it's time to decide what type of remortgage you need.The mortgage type you choose will affect how well the remortgage deal works in your favour.Typically when you've gone two to five years into your mortgage, or the length of the introductory offer, it’s worth shopping around for a better deal.The great offers you get on your first mortgage deal don’t last forever and are usually there to reel you in for the long haul.Meanwhile if you have a lot of savings then overpaying your mortgage each month could save you on interest.

The less you need to borrow, the more likely that better deals will become available to you.

As you’re more likely to be paying off your mortgage for a longer period than your other debts, you are also more likely to be paying much more.

For example, if you have debts of £5,000 and remortgage with 4% interest over 20 years, you will pay just over £4,000 extra in interest.

Our guide to remortgaging can help you decide if switching from your current mortgage deal is right for you Paying off your existing mortgage with a new one can offer flexibility, a better deal on your monthly repayments or an opportunity to consolidate your debts.

Remortgaging can also save you thousands of pounds, but it comes down to your personal circumstances.

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If you’re not sure which is best for you, read our guide to fixed rate and variable rate mortgages or see below for a brief overview of the main differences.