When your current fixed mortgage deal ends you will normally be placed onto your mortgage provider’s Standard variable rate. The chances are this may be higher than what you were paying before and will change in line with the Bank of England base rate. If you are on a SVR, you may be able to save money by moving to a new fixed mortgage deal.

If you have enough equity in your home, it may be possible to remortgage your home in order to release funds locked within the property. Your lender will require you to provide a reason for the remortgaging in this way for example, to consolidate debts, remodel your home, building an extension or use the money to invest elsewhere, for example in a buy to let property or a holiday home.

What type of Mortgage product is best for my needs?

Fixed rate: This type of mortgage has a fixed interest rate for a set period with typical period ranging from two to five years and right through to 10 years in some cases. These offer the advantage of a set repayment amount but can leave you paying more if interest rates were to fall. At the end of the fixed period you will be automatically placed on the lender’s standard rate (SVR) once the fixed rate period ends.

Variable rate: Usually the lender’s standard mortgage. The interest rate varies according to market circumstances. The Bank Of England’s base rate has an influence to how the lender set their rates but the lender ultimately controls the rates they charge.

Capped Rate: These are similar to a variable rate mortgage, but with an upper capped limit in place to the mortgage rate which guarantees that your mortgage rate will not go higher than a pre agreed rate.

Tracker: The interest rates on this type of mortgage are pinned to a base level – usually the Bank of England base rate. The rate you pay will be a fixed amount above the base rate and will change in line with the bank of England’s base rate changes.

Offset: This is a combination of mortgage and savings account. Interest is only due on the difference between your savings and the outstanding mortgage balance. A guaranteed ability to repay an amount means that the lender is taking less of a risk and can pass those benefits on.

Flexible: With this mortgage type, you can make larger repayments when it is suitable. Once you have overpaid, you can then choose to make lower payments temporarily if you need to in the future. This flexibility offers an ability to manage your repayments to suit your financial needs.

It is easy to run up debts in various different places – an overdraft, credit cards, personal loans – all at a higher interest rate than your mortgage. The idea of consolidating debts is to put all your debts in one place with the lowest rate of interest. You can remortgage to increase the size of your mortgage and use the extra money to repay your other debts.

There is a lot to consider before you decide to proceed with consolidation because there are downsides:

although the interest rate may be lower, you’ll be paying off your remortgage for many years to come, including the amount you have added for your other loans. It can help you out of today’s difficulties but you will pay more in the long run.

Your remortgage is secured against your property so, if you fail to keep up the remortgage payments, you could be repossessed and lose your home as opposed to a personal loan or credit card.a

Always take advice before consolidating your debts. Our specialist advisers are on hand to talk further with you.