Remortgage for debt consolidation
If you have a property where you have a suitable amount of equity, another option is to remortgage your home. By doing this, you will release some of the equity that you have, giving you a lump sum that you can use to pay off the money that you are owing.
At the moment the maximum Loan to Value (LTV) is 90%, meaning that if your home is worth £100,000, the maximum that you could borrow – including your existing mortgage, would be £90,000.
If your house, for example is worth £250,000, and your current mortgage £110,000, you could borrow up to £225,000, giving you a lump sum of £115,000 to pay off your debts. This is all still subject to the lenders assessment of affordability.
In addition to the knowledge that you have paid off all of your debts, there can be substantial financial gains to remortgaging your property to consolidate your debts.
It is of course important to remember that every case is different, so make sure that you check how this would work for your specific circumstances.
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|Total||140,500||Saving of £327|