Mortgages, Remortgages and Debt

April 29, 2008 on 12:58 pm | In Remortgages

When you’re trying to remortgage or take on a mortgage for the first time now you will not only be hit by the increase in interest rates but a massive increase in loan fees.

Mortgage fees have in most instances doubled and in other instances there are uncapped fees.  One lender gives a maximum £500,000 lend which would attract £12,000 in fees.

When you are remortgaging, if you can, you really want to pay the fee and not add it to your loan.  For example if you took the maximum loan of £500,000 as mentioned before, you would pay £25,940 for the fee at the end of the term.

There are 116,000 people per month coming to the end of their fixed mortgage deals who are going to be faced with a nasty shock when they see the revised rates.  Some will even experience a negative equity position.

If you are remortgaging to consolidate debt you may have left it too late as many lenders have withdrew the majority of deals following the onset of the credit crunch.  Debt advice is crucial before remortgaging to consolidate debt.  If you are just remortgaging because you have completed the end of the fixed mortgage and, will be paying your debts separately you will drastically need to review your financial position.

 

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