Remortgaging can wipe out debts and save you money

08 April 2005
Mortgage industry experts are asserting that remortgaging can consolidate credit card, overdraft and personal loan debts, and still save people up to £150 in repayments.

Mortgage advisers Charcol point out that adding unsecured debt to your mortgage and switching lender could help you manage your debt more effectively and save you money on monthly repayments.

According to Charcol, a UK homeowner with a mortgage worth £200,000 and £40,000 of unsecured debt could save £150 a month on repayment fees by consolidating the debts into one mortgage and switching providers.

This is because about one in three mortgage holders are currently paying their lender's standard variable rate, typically measuring about 6.8 per cent - but the best, market-leading deals chime in at about two per cent lower, meaning people have a lot to gain if they remortgage.

"It is clear that there are many options open to those who have got themselves into the debt trap," commented Elliot Nathan from Charcol.

The most important thing to do if you've fallen into debt, Mr Nathan advised, is to take action - and quickly.

Click here to find out more about remortgaging.
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