Remortgage With Arrears
What are arrears?
Arrears are mortgage payments that either haven’t been paid
in full or on time, or have been missed completely.
If you find yourself experiencing difficulty meeting your mortgage
payments due to mounting debts, you need to act quickly. Most lenders
will charge a penalty fee if you miss payments, further increasing
the size of your debt. Don’t wait until the debt becomes unmanageable,
even if the financial problems are only temporary.
What should you do
Speak to your lender. Explain that you are experiencing difficulty
meeting the required mortgage payments, but are seeking professional
advice. Having a clear plan how to clear the outstanding arrears,
and meet any future payments until the mortgage is cleared, is very
important.
Even if you have mounting debts with other credit agreements, ensure
your mortgage repayments are a priority. Having your property repossessed
will only make the debt problems worse, so it’s critical to
try and stop your mortgage arrears from rising too quickly. Repaying
as much as you can afford will also show your lender that you are
trying to tackle the problem.
Remortgaging is a possible option that can help people who are
finding themselves with high outstanding arrears. Remortgages can
offer a number of benefits to people in this situation:
Ability to increase the length of the mortgage term. This
will reduce the monthly repayments, allowing the borrower
to get their feet back on the ground.
Consider using the equity stored in the property to consolidate
debts. Releasing any cash stored in your home to pay off any unsecured
loans, credit cards or store cards can decrease the total amount
of interest you pay and can reduce your outgoings into one more
manageable monthly payment.
When considering a remortgage, it is important to think carefully
before securing other debts against your home. Your home may be
at risk if you fail to keep up repayments on your mortgage.
Let The More Group help you start again
If you have severe credit problems and think remortgaging
might help make a significant improvement to your financial
situation, and will allow you to start again, then contact
The More Group and ask about the Clean Start Remortgage. Designed
to help individuals with mounting arrears who are unable to
meet their mortgage repayments, this market-leading product
offers the opportunity for homeowners, who would normally
be rejected by other lenders, to remortgage as a first step
to getting their finances back on track.
To discuss your options with a remortgage expert, and to
find out whether a Clean
Start Remortgage will be right for you,
complete one of our 5 minute enquiry forms.
Our Lending Criteria:
Up to 8 months outstanding arrears with prime lenders and 5 months
with sub-prime lenders.
Proof of last 1 month’s payment.
Must be able to show an improved debt position after remortgaging.
|
