A remortgage can be a great way to reduce debts but if you avoid underestimating a bad debt expense it will help you to make the best decision and avoid a bad debt consolidation to save money.

Take a careful look at existing mortgage terms before considering a remortgage for debt consolidation:

     1. rate of interest
     2. type of interest rate (fixed, variable, capped, or discounted)
     3. early repayment charges
     4. penalty interest for moving mortgage

Evaluate all penalties involved for remortgage.

     1. early repayment fees or penalty interest
     2. overhang charges

Answer all period or rate questions.

     1. special rates, changing rates
     2. length of period rate interest
     3. overhang period term and penalties involved

Consider advantages and disadvantages involved with new mortgage.

     1. new rate of interest
     2. type of interest rate involved
     3. period lengths and rate change

Have property valuated by appraiser and have solicitor handle and advise all fees associated with the remortgage.

     1. booking/ arrangement fees
     2. valuation fees
     3. solicitation conveyance fees
     4. high loan to value lending charges

Weigh all rate factors, periods, penalties, and lending costs to determine if savings on interest payment for remortgage will be worth the changes when trying to save money for debt consolidation.

Things to Remember about a Remortgage for Debt Consolidation:

     # Do all sums carefully to avoid higher than expected payment
     # Fees will be less if process simpler or involves the same lender

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