Remortgage or Secured Loan?
Is it better to remortgage or take out a Secured Loan?
A remortgage involves the settling of your first mortgage. What if the existing mortgage is on a favourable fixed rate or has high exit penalties?
It may be better to keep the old mortgage and either take out a second mortgage, known as a Secured Loan, or even a unsecured loan.
Seek independent financial advice if you are unsure what to do.
Can I remortgage with bad credit?
If you have significant mortgage arrears or have a poor payment record the mortgage lender may be reluctant to offer you a new mortgage. You have no right to take out a new mortgage with your existing mortgage lender. And because mortgage rates are low you will have to meet their stringent lending criteria, which may not be easy.
The Secured Loan alternative
Lenders of Secured Loans are more flexible when it comes to mortgage arrears or a low credit score. If you only need a small loan and are prepared to pay a higher interest rate, a Secured Loan may well offer a practical solution.
A Secured Loan does not have to be long term or match your first mortgage. If you want to settle it early you have the legal right to do so. Secured Loans have only been regulated by the FCA since 2015 but the high lending standards now required have made them a mainstream product.