Thinking of Re-Mortgaging

dori2o

I'm giving serious though to remortgageing my house, but I dodn't know how to go about it.

Ideally I'd like a no fee mortgage as I have no money to pay the fees.

The property I have is valued at approx £84950, the current mortgage has a balance due of around £37500 with 21 years remaining, and I was looking to borrow between £50k to £55k, to do some improvements, and pay off some expensive debts.

I have however got a bad credit rating, and am worried that by remortgaging, I wil have to have a large intrest rate, and doing this would be non beneficial to me. Would the fact that there would still be at least £30k equity in the property help at all?

Are their any reccomended Building Societies out there I should try for someone with my sort of rating?

I have also thought about having an intrest only mortgage, if only for a couple of years, thus helping to pay off other debts quicker by saving money each month on a capital payment, however, I have got no clue about interest only mortgages, whats the deal with them?

Any and all help greatly apreciated.

nelly_2

You'd be better off posting this in the debt free wanna be board.

Generally you ar'nt better off remortgaging because in the long run you pay more. However there are different situations.

Ask your mortgage company if its possible first and how much they want to charge

lynzpower

Agree with Nelly.

You say you are going to pay off expensive debts, nothings more expensive than a mortgage when you look at interest ofver the next 15 years say.

Come over to the DFW board, we can advise there
lynz

silvercar

I would suggest you clear some of your debts before doing house improvements.

Changing unsecured debts for secured loans means your home is at risk if you cannot keep up with repayments.