RefinanceOne way that our customers get back on top of their finances and improve their cash flow is by choosing to refinance existing loans, credit cards, overdrafts, higher purchase and store cards. This can help to dramatically improve your cash flow, even to the point of enabling you to start putting some money aside as a back up or perhaps to getting an overdue treat for loved ones or yourself. By refinancing you could pay off all the credit that you have decided to clear - so that you will just have one affordable payment to make each month. It is important not to confuse a refinance loan solution with a debt management (DM) plan.
The refinance loans that we arrange to consolidate your debts start at just £3,000 and can go up to £250,000 with affordable repayment terms from 3 to 25 years to enable you to get the right balance between paying the loan off and not overstretching yourself. Our finance team are UK based and can walk you through the figures that would apply to you via a free no obligation quote that will not affect your credit rating.
We believe in transparency and honesty and will treat your enquiry as a priority - so please call our team free on 0800 0159 108 or dial 0330 0536001 (mobile friendly) or fill in our short enquiry form to find out you can join the ever expanding group of UK wide customers who have successfully refinanced their debts and made a fresh start.
Can You Refinance With An Adverse Credit History In The UK?There are essentially two types of loans to refinance you can take out - unsecured loans and secured loans. If you have adverse credit to a minor degree (i.e. a few late or missed payments over a period of time) you may still be able to qualify for some unsecured loans at a decent rate, these loans often cap out at around the £15,000 mark with terms up to around six years. These personal unsecured loans may be used for refinancing subject to the lenders criteria.
If you pay a mortgage or are a homeowner - even if you do not live in the property - you can look into a secured loan. These utilise equity you have in your home or a property you rent out (such as a buy to let property if you are a landlord). Secured loan plans start at circa £5,000 and can go up to around £200,000 subject to criteria and affordability. Some key features of secured refinance loans are detailed below.
- Free quote available which does not affect your credit rating.
- Very expensive homeowner secured uk loan panel.
- Terms From 3 to 25 Years To Match Your Budget.
- Debt consolidation or refinancing is a common use of secured loans from £5,000- £250,000.
- The more equity you have in the security property the more you may be able to borrow.
- Some secured lenders allow you to repair your credit by clearing ccj`s and defaults.
- The plans will require any current mortgage arrears to be cleared from the advance so bear this in mind when applying
- Refinance home owner loan plans are available for self employed and employed customers based in the UK. Some benefit income may also be taken into consideration.
You are not alone if you find yourself having defaulted on credit commitments, incurring a county court judgement from a lender pursuing your loan or credit card, anyone can find themselves in a difficult place for a period of time and before you know it the distractions going on in your life cause you to slip up in your credit commitments. The good news is there are still lenders out there that will look at your circumstances individually and consider your refinance enquiry.
Refinance Or Debt Management Plan - What Is The Difference?DM plans mean you under pay your creditors each month and if you use a DM company they will normally take a fee from your monthly payment to do administer the plan. Because you are underpaying your credit profile will normally fall into arrears and then default, damaging your credit rating and therefore restricting access to loans, mortgages, remortgages, HP or low interest credit for up to 6 years. My Sort of Loan do not offer debt management plans, however if you are in one and wish to draw a line under it by finally paying those lenders off and are ready to start repairing your credit we will do our utmost to make this happen through a refinance debt consolidation loan. If you are interested in trying a debt management plan rather than refinancing your credit then we would recommend you take independent financial advice first. It may be that you cannot improve your position enough to make a refinance loan viable, in which case an IVA or DM plan may at least enable you to keep chipping away at your debts whilst bringing down your monthly commitments.
Can I Choose Which Debts I Refinance?The straightforward answer to this is yes. But to be clear this needs a little expansion. If you are looking at a refinance option at least a couple of key factors will impact on how much flexibility you may get on which loans or cards to refinance. These are your affordability position and your payment history. In the former area the more income you have per month that is not committed already the more you will be able to pick and choose which credit to repay. So it is not necessarily about how much you earn but how much you earn compared to how much you spend. Taking the decision to get back in control of your UK credit can often therefore involve making a few lifestyle sacrifices as well.
In terms of payment history if you have accounts in arrears or where you keep missing payments it may well be a good idea to deal with those debts as the indications are that you are struggling to deal with those credit commitments. Lenders in the UK who provide refinancing loans want to ensure that you are going to be in a better position after you refinance than before, this it to make sure that customers borrowing money to pay off other debts are treated fairly and borrow responsibly.