Several reports have pointed to a revival in remortgaging activity in recent weeks. Figures from Conveyancing Alliance suggest that the growth noted by the Bank of England and others at the end of 2010 is continuing. Some of the increase has been put down to renewed enthusiasm for fixed rate deals, in the wake of calls for higher rates. More competition between lenders is also thought to be a factor. Now, with signs of an economic slowdown, there’s talk of record low rates persisting.

One area which could see growth is remortgaging for the purposes of debt consolidation. Latest research from the Post Office shows that consumers have been building up credit card debt in particular. According to their Consumer Credit Report, many of us own more than one card, with one in five men owning three or more. 7% of respondents reckoned it would take them three years or more to clear their debt.

That may be an underestimate. Financial experts calculate that the practice of paying off the monthly minimum means that relatively modest debts can take decades to clear. Given the rates of interest often charged on credit cards, it can make sense to consolidate such debts by adding to your home loan. As well as simplifying your finances, you can take advantage of the competitive remortgage deals currently on offer, to help ensure your monthly payment is affordable. You’ll need to take into account fees and any early repayment penalties of course.

An experienced broker such as Go Remortgage can provide you with the figures and information to enable you to make your choice.

Tags: Business, Economy, GoRemortgage, Mortgage Rates

This entry was posted on Tuesday, February 1st, 2011 at 9:42 am and is filed under Money Saving Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.