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With the festive period over, many individuals will be looking to adjust their finances after overspending throughout Christmas and New Year.

Looking forward to the year ahead with new beginnings on the horizon, many individuals turn to address their finances, planning on how to re-evaluate their spending for the coming year. With interest rates still very low across the market, there has never been a better time to do so.

A consideration when looking into sorting out finances could be to remortgage property. Mortgage rates tend to be much lower than personal loan and credit card rates, and can in turn, help those struggling to make payments gain control over their finances again after a few hectic months of splurging.

Neil Gallagher, mortgage specialist at Phil Anderson Financial Services Ltd discusses the benefits of remortgaging and why now is the right time to do so…

To make home improvements:
Refreshing your home, making home improvements, or adding an extension to your property can help increase the value of it over the long term.

By investing smartly in your property, the value of the property will go up and in the long term, individual’s sense of having a clear financial plan will also benefit well-being.

Consolidate debts:
Over the festive period many people will over-spend and may struggle to pay off debts such as credit cards. By remortgaging property, this can help clear those debts on high interest fees, as mortgage interest rates are usually much cheaper than credit card fees.

However, before doing so, it is advised to discuss this with a mortgage adviser to ensure all monthly mortgage debts can be paid comfortably.

Equity release:
If your property’s value has risen, then you may be able to have some of its equity released to use where it may financially be needed.

Although the value of your mortgage loan will increase, you will be able to manage other debts accordingly, decreasing the risk of running into trouble with high, unattainable interest rates.

You can save more money:
It is much easier for individuals to save money when not having to pay excessive credit card interest rates. With a manageable mortgage, it is much easier to save and put money away for future investments. This could include property, children’s education, holidays or extra curricular activities.

When considering remortgaging property in settling other debts, it is important to note that the remortgaging process usually takes about one month. However, this can vary under the individual’s circumstances.

It is also advised that those looking to remortgage should seek the advice of an independent financial adviser to ensure they get the best deal possible, and can afford the new mortgage payments comfortably.

To look at mortgage options please contact Neil or Kevin on 01224 900879 or 01358 268166.

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