A First Direct remortgage can help with the household budget
A First Direct remortgage can be used by home-owners who want to add non-housing debt to their mortgage. Releasing cash in this way makes it possible for home-owners to consolidate existing debt under a lower interest rate.
Home-owners who borrow on their mortgage, find their total monthly debt repayments are reduced to more manageable levels making budgeting easier. As remortgage deals are predicted to be the preferred method to raise funds for many home-owners in 2012, a First Direct remortgage is likely to help many borrowers with their household finances.
An important point for home-owners to remember is, after all the debt has been combined into one product, a long mortgage repayment term means more interest will eventually be paid back than if the debt had been left to run it's natural course. However, borrowers who use a debt consolidation strategy in conjunction with a mortgage that allows overpayment, will pay off the debt in much less time with less interest needing to be paid.
A First Direct remortgage allows home-owners to bundle all of their debts into one by adding them to their home loan. Adding other borrowing to a mortgage is a good idea if there are debts elsewhere which are charged at a much higher interest rate. The interest rate charged on a mortgage is probably a third of what is charged on other debts such a credit cards. However, remortgaging should not be undertaken lightly as it means securing more money against the home. If at some future point circumstances change and repayments are not met, a borrower's home will be at risk.
