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Adverse Credit Remortgage

Updated on August 10, 2010

Adverse Credit Remortgage

An adverse credit remortgage is the process of paying off one mortgage with a new mortgage (remortgage) by using the same property from the first mortgage as security for the new mortgage in the midst of adverse credit problems.

There are many benefits that come with an adverse credit remortgage even with adverse credit problems. These benefits include:

1) Saving money by having a fixed rate remortgage or discounted remortgage rate

2) Debt consolidation on existing credit or raising cash for home improvements

3) A new car

4) A new business

5) A combination of all of the above

When deciding on an adverse credit remortgage, please note the implications the mortgage might bring for example, your home will be at risk if you are unable to keep up with repayments on your new mortgage. Also be aware of all the costs involved with a home remortgage and be smart about totalling up these costs such as the property value of your home, legal costs and fees, against the overall costs if you decided not to choose an adverse credit remortgage.

Talk to your financial planner first and discuss how an adverse credit remortgage might be beneficial for you in your current situation.

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