In the midst of the credit crunch, a reduction in the amount of credit available to borrowers is not the only problem currently facing consumers. Any remortgage deal or other loan, and especially short term debts, have generally become more expensive over the last year.
Many of us have racked up credit card debts in the spending boom, and are now feeling the pinch. Faced with high credit card repayments and ever increasing costs of living, rising food and fuel prices, many individuals are struggling to make ends meet and are using their store and other credit cards as a way of securing short term borrowing.
This is demonstrated by examining the most recent data on consumer spending on credit. Spending on store and other credit cards in the UK has soared to an average of £45 million every month, putting many households under increasing pressure to meet monthly repayments.
Securing a remortgage deal to release equity in a home to can relieve the pressure caused by short term debt; by paying off credit cards and loans with capital released by remortgaging, monthly debt repayments can be more affordable overall: released equity can be used to clear credit card debts and other short term loans reducing net monthly payments, but at the expense of acquiring additional long term mortgage debt.
However, taking out a remortgage deal it is not an option to stumble into blindly: taking expert remortgage advice is critical to ensure that a remortgage deal is affordable and will leave a borrower's day to day finances in a more manageable state.
Finding a company that offers the services of an independent financial advisor is also recommended; not only can mortgage advisors provide consumers with remortgage advice, they can also work with their clients to carefully assess the borrower's personal finances and guide them on the affordability of any remortgage deal.
An independent mortgage advisor can put forward all deals that match a prospective borrower's requirements, and will gather and compare a mortgage quote from the most suitable providers for their client to consider. But in an environment where credit is more difficult to get, is it still possible to secure a good remortgage deal?
The answer is yes.
Contrary to popular belief there are still plenty of remortgage deals available in the market; total mortgage lending in July totaled £4.3billion, only slightly lower than the previous six-month average figure of £4.8billion. For people with good credit records securing a good remortgage deal is unlikely to be a problem. For this reason, people seeking a remortgage deal should take active steps to maintain their credit rating while gathering a mortgage quote.
Suitably qualified independent advisors with an expert knowledge of the market will be able to provide impartial remortgage advice as well as gathering a mortgage quote from each of the providers that offer a remortgage deal that meet their clients requirements. Consumers then face a difficult decision about whether to choose a fixed or variable interest rate.
For many individuals, choosing between a fixed rate or a variable rate mortgage deal may be a choice between future certainty of repayment costs, set against a possibility that a fixed rate remortgage deal may become more expensive that the market variable one.
There has never been a greater need for consumers to secure good independent remortgage advice when seeking a remortgage deal, to help them select the best possible mortgage quote for their circumstances. Affordability is an important consideration, as anyone considering taking out a new mortgage or other loan must remember that their home may be under threat if they fail to keep up repayments.
Julia Gleave is a writer and author for http://www.mortgagedealsdirect.co.uk We help you compare the vast number of UK mortgage deals to get you the best mortgage quote by taking into account mortgage repayment length, rates and mortgage types.
Article Source: http://EzineArticles.com/?expert=Steve_Clawley
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