R for Remortgage

For many people in debt, one method they often use to alleviate some of the pressure on their finances is to remortgage their property. Prior to the economic crisis, this was an extremely popular method for homeowners to consolidate some of their debts. However, with the economy poised to dip into another recession, remortgaging has become a less-used option.  Clients of mine who do own their homes no longer have enough equity in the property to consolidate their unsecured debts in this way, and even if they did, much stricter lender underwriting has meant they are unlikely to be approved.

As a result of the tighter lending criteria reducing the number of remortgages approved, it has fallen to me to advise a wholly different type of clientele.

These clients usually have relatively high debt level, averaging more than £50,000. Homeowners, the clients earn good salaries, often holding positions of responsibility at work, and have spacious homes, typically with three or more bedrooms, in nicer areas of the country.

While previously they would have consolidated their debts through a remortgage, they are now keen to enter a Debt Management Plan or an IVA. The savings on offer for them are substantial; in all cases I have reduced their debt-related outgoings by more than half, allowing them to get back in control of their finances.