A significant proportion of Britons are using loans to repay their mortgages, so they could benefit from remortgaging their property if it means they can reduce how much they pay back each month on their mortgage hopefully enabling them to avoid using a loan to pay their mortgage payments.
Homeless charity Shelter has discovered that almost one-in-five renters or homeowners had borrowed money to cover housing costs, while two per cent had even resorted to getting money from short-term, high cost payday lenders.
While this may keep the wolves from the door for a month or so, ultimately these loans will need to be repaid and you`ll have to find even more money than you would in the first place, so finding a more long term solution may be better.
Shelter`s chief executive Campbell Robb explains that "sky-high housing costs, stagnating wages and the high cost of living have taken their toll", adding that "the economy as a whole might be on the up, but losing our home could now be a frighteningly real prospect for any one of us".
However, remortgaging your home could potentially avert this possibility, as you can get on a new deal that requires lower repayments each month, even if it means paying off your mortgage over a longer period, which may ultimately result in more interest being paid.
Remortgaging towards the end of your existing deal should be relatively straight forward, but if you look for a new mortgage while still in the middle of one, you may have to pay an early repayment charge, so you will need to check through such areas carefully with your mortgage adviser.
At First Choice Finance, our in house advisers can browse our lender panel to find a remortgage deal that`s targeted to your individual circumstances. We start by taking a few details from you, establishing your requirements and providing you with a no obligation personal illustration to consider. Find out more by visiting firstchoicefinance.co.uk or by calling 0333 003 1505 or 0800 298 3000.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014-2018.