Financial Resource

Article by Turk Malloy

Remortgage is a method, by which a borrower can replace his present mortgage with a new one. You can avail remortgage program from a new lender or your current lender. If you are paying high-interest rate on your present mortgage, remortgaging can give you the right solution. And in case, if you have a bad credit score, you can avail bad credit remortgage.

Generally, bad credit remortgage program is same as general remortgage. But the distinct part is that it is designed for bad credit scorers. All types of cases including country court judgment, IVAs, bankruptcy, defaults, arrears, skipping payments, and late payment are included in bad credit remortgage.

Bad credit remortgage can be beneficial for borrowers. How? Let’s discuss its advantages:*It enables borrowers to save money. By replacing the present mortgage with a new one, a borrower can enjoy the benefit of lower interest rate. It increases the probability of saving money. It can be said, since, with this option, a borrower get rid of paying a higher interest rate, hence borrowers can save up to £100- £200 on their monthly payment.

*The possibility of lower monthly payment has enhanced the popularity of bad credit remortgage among borrowers. Furthermore, borrowers can get a chance to expand their repayment period. Let’s discuss the process. Suppose, a borrower has taken mortgage for 10 years and he has completed only 5 years. Whereas, the borrowed amount is £40,000 and ₤20,000 has been paid off. Remortgage will assure the borrower to expand the loan period again for 10 years on the remaining amount.

*Remortgage is also considered as the best alternative of debt consolidation. Borrowers can solve their debt dilemma with this option. They can manage their debts by consolidating all debts into one. Many a time, it is seen that homeowner consolidate their debts through remortgage.

*With bad credit remortgage, a borrower can repair his bad credit score as well. After opting for bad credit remortgage, if a bad credit scorer makes his monthly payment on time, after few years, he can come out of his bad credit score. Apart from that, borrowers can improve their financial condition, as remortgage facilitates them to unlock the equity in home.

Bad credit remortgage enables bad credit scorer to replace their present mortgage with a new mortgage that is available at a lower interest rate. A bad credit scorer can enjoy the benefit of lower interest rate and lower monthly payment with this option. In addition, bad credit remortgage provides them a chance to eradicate their bad credit score.

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