Remortgage question

  • Thread starter Curious2008
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Curious2008

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I am looking to remortgage ... value of property is 220k and remortgage for 200k... monthly outgoings at present are a total of 1600euro and with a remortgage they would be 1000euro... can anyone please give me advise on remortgage and is it a wise move to make??
 
Why are you remortgaging? Are you consolidating unsecured debts onto the mortgage? If so then you should aim to repay the topup in a similar period to the original loans (e.g. years rather than decades) otherwise it might cost you more in the long run. Also if you are consolidating unsecured debts then you should make sure to address the spending/budgeting patterns that got you into this situation and make sure that this consolidation is a once off measure to regain control of your finances.
 
Your right it is to condildate loans...a combination of two now become one! i have been dealing with a broker company First Credit...and its on its first approval. I am just so unsure what to do ... thanks for your advise.
 
What sort of broker is First Credit? How many lenders do they deal with? Are they a loan consolidation specialist? Are they a subprime lender/broker? Maybe if you posted some more specific details about your overall situation (perhaps in the Money Makeover forum and template) people could comment in more specific detail?
 
Remortgaging can be straightforward, but before you go ahead you need to consider the following:

  • If you're locked into a fixed term deal with your present lender, you may be liable for an early repayment charge that could negate some of your potential savings. You could also be charged a mortgage closing fee by your lender.
  • If you only have a small mortgage, then you might be better off staying with your current deal, as any savings could be cancelled out by the costs.
  • When comparing your old mortgage with a proposed new one, make sure that you measure apples for apples. Compare a repayment mortgage with another repayment one rather than an interest only loan.
 
The original question is not so much about remortgaging as about loan consolidation onto the mortgage!
 
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