Published 24 December 2016 · Last reviewed 25 February 2017 · Older article — see current rates

Want a Remortgage or loan to Pay off credit cards but have had credit problems

The excesses of Christmas affect almost everyone and running up debts on credit cards is all too easy so its best to start thinking about how you can Pay off credit cards. The trouble with credit cards these days is the purchase rates and promotional periods are often not that good. Transferring cards incurs costs and in many ways just kicks the problem down the line so a remortgage or secured loan might be a solution for you.

For many personal loans can be hard to obtain as the credit scores are tough as the providers use super warehouses like MoneySupermarket and Compare the Market to attract bucket loads of customers and they take the cream at the top, however, there may be a viable alternative even if you have had credit problems in the past in the form of a remortgage or secured loan.

As the debt is secured against your property the lender has more come back in the event of non-payment as such they may be more willing to take on customers with a poor credit profile. At Niche Advice we have helped clients all down the credit spectrum consolidate debts into one more manageable monthly payment. That’s right even applicants with missed payments, CCJs, defaults and historic bankruptcies.

Importantly, before you make a judgement on whether to transfer unsecured debt you should consider the following:

• The re-negotiation with existing creditors to Pay off credit cards.
• Securing debt will put your property at risk if you do not keep up repayments.
• It is likely that by securing your debt that overall you cost will be higher as you are likely to be borrowing (paying interest) over a longer period.
• You seek professional advice from a professional debt consolidation mortgage broker such as Niche Advice.

---

Example Product – Debt Consolidation Remortgage to Pay off credit cards (Residential)

Initial Rate: 1.39% Subsequent: 3.74% The overall cost for comparison 3.43%% APRC

Features: Remortgage to clear your credit cards and personal loans. Free basic legal service.

Type and initial benefit period	Fixed until 30/4/2019
Minimum deposit / equity:	35%
Valuation fee	FREE
Booking fee	£0
Lender arrangement	£0
Telegraphic transfer / CHAPS fee	£30
Legal fee	£995
Early repayment charge	2/1% in the fixed period

For more information on a Remortgage to Pay off credit cards please call complete the enquiry form on this page or call the number below. 

---

You are consolidating your existing financial commitments, you should therefore be aware that whilst this may mean you will make short term savings, over the long term, you may end up paying more. This is because you may be extending the period of the loan. You are also transferring previously unsecured debts to a mortgage which is secured on your home. The reason you want to consolidate your existing debts is to reduce your monthly outgoings.

Please also be made aware Lenders tend not to look favourably on applicants that have a repeated history of debt consolidation so future finance for this reason may be hard to obtain.

---

Important Information

Residential and Buy to Let Mortgages

Rates current as at 22/12/16 . The overall cost for comparison is based on a purchase price of £300,000 over a 25 year term. The Right-to-Buy example is based on a discounted purchase price of £150,000. Repayment for Residential and Interest only for Buy-to-let (unless otherwise specified). Eligibilty will depend on your own personal circumstances.

KEY – ERC = Main early repayment charge.