It can help you release the equity that is in your property in a lump sum to repay debts. It can also reduce your monthly payment, freeing up money on a monthly basis to pay to your debts. A remortgage can mean changing products with your existing lender, or switching to another mortgage lender completely.

A mortgage lender bases your application on a number of things including, your credit rating, the value of your house and how much you want to borrow. If you are in arrears with your mortgage or any other debts, your credit rating is affected and it is unlikely you be able to get a good mortgage offer.

If you are currently on a mortgage deal that hasn’t ended, for example a fixed term for three years, there will probably be early redemption fees if you remortgage.

Remortgaging is something you need to consider carefully. It is important to get as much information as possible to make your decision. The areas to consider are

• What will the interest rate be?
• What term do I want?
• What will the new monthly payment be?
• What type of mortgage is best for me, fixed or variable?
• How much am I going to pay on fees for a remortgage?
• How will this improve my situation?

If you are considering a remortgage to consolidate existing debts, we would strongly advise that you speak to us first. You can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.