Consolidating debt into first mortgage Just 1on1 dirty chat free
Meanwhile if you have a lot of savings then overpaying your mortgage each month could save you on interest.Fixed rate mortgage: A fixed rate mortgage will fix the interest rate you receive on your remortgage deal for a set period of time, but usually this period is between 2 and 5 years.
With interest rates fluctuating, you may wish to consider remortgaging with a variable rate tracker mortgage plan, or move onto a fixed rate mortgage for stability.
If you’ve already paid off the bulk of your mortgage then it may not be worth paying for a remortgaging deal as the savings you make will struggle to cover the cost of the switching fees.
To help yourself save money, compare the annual percentage rate (APR) between your current mortgage and other remortgage deals on the market, then assess whether or not this will better the costs.
Moreover, you may also put your home in jeopardy, as it will be secured against the debts on your credit cards and loans, as well as your mortgage.
In essence, avoid remortgaging for debt consolidation and see if you can pay off your existing debts separately instead.
Tracker mortgage: Unlike a fixed rate mortgage, a tracker mortgage will set your remortgage deal interest rate a percentage above the Bank of England’s base rate or above the lender’s standard variable rate.