subject: Poor Credit Remortgages [print this page] Since equity is it's own unique form of credit history, a personal credit history marred with unpaid loans, excessive credit card debt and late bill payments is not necessarily something to disqualify a person seeking a loan over, immediately. Most lenders will look at all sources of collateral that a person has before rejecting their loan request, and in many cases a person with bad credit has little else to offer but the equity in their mortgage. Using the past mortgage payments (and the remaining balance of the mortgage loan) as a base, a lender can determine how much funds a borrower will be able to take from them to make it worth their while to use the house as a source of collateral for the loan. If the lender is not the same as the original mortgage lender, it will depend heavily on how much equity has built in the mortgage borrower's past agreement. A lot of equity means the new remortgage lender can take over the older mortgage agreement with a smaller out-of-pocket investment, and they'll be able to reap the benefits of either longterm loan repayment or the actual property itself (in cases of foreclosure) without much risk. You must not be paying higher amount every month towards the current mortgage since you have an option to replace the high rate mortgage with low rate mortgage.
While doing so the poor credit doesn't come in a way and there are a lot of lenders in UK who are giving the poor credit remortgage to the people who have the damaged credit history due to the payment defaults, late payments, arrears and county court judgments in names. This people will switch to other mortgage of benefits. The Poor Credit Remortgage in UK are accessible at the competitive rate of interest. So you may replace the high rate mortgage with the poor credit remortgage of the lower rate of interest. You can also avail the poor credit remortgage for the larger repaying duration. Therefore, lower rate of interest and larger duration will result in the reduced monthly payment to the poor credit remortgage. In this way you save plenty of pounds every annum that you may save in clearing the debts or else for any reason. However, you should make an extensive search for appropriate poor credit remortgage in UK.
