Remortgage your home to save money and pay off debt.
If you are trying to pay off debt, you could try to remortgage your home and save money by getting a lower rate.
Recent figures from the Bank of England show nearly £10billion of reduction in mortgage debt by UK home owners. It has been suggested that a subdued hosing market is encouraging home owners to pay off debt rather than move.
The study suggests that home owners are repaying more money, such as mortgage debt, than is being taking out. Statistically this may not be an increase in paying down debt but reduced activity levels in the housing market and re-mortgaging.
Low interest rates on savings are also thought to be encouraging households to use any spare funds to pay off other debts. If a mortgage or debts are at a higher interest rate than interest paid on savings, you are effectively losing money.
If you remortgage your home to get the lowest interest rate available, you can make your repayments or savings more effective. Every amount you save by paying a lower interest rate, can be used to pay off the debt. While this may not sound much it can build up to substantial savings over the lifetime of a mortgage.
Reducing the mortgage balance can also have the advantage of increasing the percentage of equity in your home. This could increase the availability of competitive mortgages on offer, the next time you remortgage your home.
Call Deal Direct for low rates.
