What Is Best A Secured Loan Or Remortgage?

I need to take oout £30k for debt consolidation. Is a secured loan (i can’t get an unsecured loan) over 5 years or remortgage. I suppose if i remortgage it will be over 20 years? Any advice?

6 Comments: Trackback URL | Comments RSS

  1. Death Metal Album Reviews Says:

    I work for a debt advisory company and have found a lot of our clients have got themselves into a complete mess with secured loans. Mostly due to really high interest rates – they tend to get away with it because the majority of their customers are people who need to consolidate debt and can often be getting quite desperate.
    If you can remortgage, it’s definitely better as it will reduce your outgoings and leave you with only one charge on your property. If you can’t because of the current market etc then shop around and check out how much you’ll be paying back in total with a secured loan.
    Another bad side of getting a secured loan is that they tend to have a zero tolerance on missed/late payments so if you ever get into financial difficulties there’s a higher risk of you losing your home. Most mortgage companies tend to try and help you find a solution and often offer payment breaks.

  2. bluenose Says:

    Assuming you are in the UK, it is never good advice to consolidate short term loans into a longer term mortgage. However many people do it to cut outgoings. If you have a good credit history, equity in your property, and earn good money, you could do it. Second charge mortgages tend to be a lot more expensive .
    Speak to a good Independent Mortgage Broker who can compare the cost of both for you.

  3. Brown W Says:

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  4. davis r Says:

    GOOD DAY TO YOU,
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  5. Samuel H Says:

    Secured Loan

  6. practise Says:

    Remortgage you’re better off.

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