Can I remortgage if I have outstanding debt?
The answer to the question, can I remortgage if I have outstanding debt can only be answered with other financial information available. An outstanding debt does not necessarily prevent you from getting a mortgage, but it will be taken into account.
For independent advice and the best rates available to suit your situation contact Deal Direct. We can find the right mortgage product for your circumstances.
As with all mortgages the whole financial picture will determine if you can remortgage and at what cost. Most lenders will consider the balance of an outstanding debt and its repayment, against your income when considering mortgage affordability.
If you have a high income and a good credit history, any debt may be considered by lenders as part of your outgoings. If you can afford to make repayments for both this and a mortgage, it could just be part of the whole picture.
If your outstanding debt is large, it may not stop you getting a mortgage, but it could affect the amount you can borrow. Repayments on a large debt will reduce the income you have to make mortgage payments, because your disposable income will be reduced.
If you have a large amount of equity in your home, you will be considered less risk to lenders. Mortgage availability is likely to be higher as well as improving the terms and rates you may be able to get.
Whatever your situation remortgaging to a lower rate can save you money, so the question - can I remortgage - is worth asking.
Call Deal Direct for advice today.
