Avoid Repossession by remortgaging

If you have missed payments on your mortgage, or have a lot of secure debt that you cannot pay, a remortgage may be the best way to prevent the repossession of your home.

A remortgage assumes equity in your house as the lender will want surety and will not, in the current climate, lend beyond the value of the property. Indeed, your current lender may well not lend to you if you have not run your finances with them soundly. You may have to look for a new lender and take an interest rate that is less favourable.

Interest rates for your remortgage will depend on the lenders available at the time, and the degree to which your credit and status are affected by your employment and financial circumstances. If the remortgage is a last resort you may have to take whatever you can get, as long as you can afford the repayments. The people you owe money to will primarily want to know that you are doing something positive to pay off your arrears.

If you are in doubt as to what is the best direction to go it may be worth taking financial advice. The Citizens Advice Bureau may be a ble to help. Alternatively, a free consultation with a mortgage broker may clarify what it is you can do if you choose to remortgage.