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Debt consolidation, home improvement

Remortgaging and Secured Loans Can Help You Solve Your Debt Problems Once And For All

According to Credit Action, one thousand people in the UK seek some sort of debt advice every day. Formal debt help can be expensive and certain solutions such as IVAs or Debt Relief Orders will damage your credit standing.

So, why not consider secured loans or remortgaging as a way to solve your debt problems once and for all?

Remortgages and Secured Loans

A remortgage is the process where you switch your entire mortgage balance to a new lender. You also have the potential to borrow some additional funds as part of the remortgage process.

A secured loan means that your existing mortgage remains with the same lender. You take an additional sum with a second, different lender.

There are various advantages and disadvantages of each type of loan. Remortgages can incur higher fees and costs whilst secured loans can be more appropriate if you are tied into a deal with your existing mortgage lender.

Reduce Your Interest Charges and Monthly Repayments

One of the main advantages of taking out a remortgage or a secured loan is that the process often allows you to borrow additional funds. This additional borrowing can then be used to repay any unsecured borrowings that you may have (including credit cards and loans).

According to Credit Action, the average interest paid by each household on their total debt is approximately £2,656 each year. Credit card interest rates are often in excess of 15 to 20 per cent and so the total interest charges can rack up quickly.

So, by taking out a remortgage or secured loan you can borrow the additional amount you need on a competitive interest rate. This allows you to solve your debt problems by consolidating your existing borrowing.

Save Time by Having One Loan and One Creditor

If you have lots of loans and lots of credit cards you will have to deal with lots of different financial services providers. You will probably have lots of different direct debits coming out of your bank account and it can be complicated to make sure you keep up with your minimum repayments. It can also take hours to speak to each creditor individually when you have questions or queries about your account.

A secured homeowner loan can therefore help you save time. By consolidating all your credit card debts into one simple loan payment you immediately remove the need to speak with multiple creditors. You will benefit from the ease and simplicity of one direct debit and one phone call.

Securing Previously Unsecured Debts

Unsecured debts such as loans and credit cards have no ‘collateral’ to back them. This means that lenders have no asset that they can stake a claim to if you fail to keep up your repayments.

A secured loan or remortgage works differently. As the lender takes a legal charge over your home, they can force the property to be repossessed and sold if you don’t keep up your loan payments.

So, if you are looking to solve your debt problems by remortgaging or taking out a secured loan, you are securing previously unsecured debts. Whilst there may be many advantages in terms of saving time and money, you should be aware that your home is at risk if you don’t keep up your repayments on a mortgage or secured loan. This is not the case if you default on unsecured debts.

To use your home to raise money at a competitive APR, please fill this homeowner loan form.

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