Which is better as a way of freeing up capital, a remortgage or a consolidation loan?
generally speaking when you offer security for a loan the rates will be cheaper. if that lender is the same as your main mortgage it will be the cheapest of all (generally).
in terms of cost you could make the order:
main mortgage lender - secured loan company - unsecured loan company - credit card - payday loan / pawnbroker / door to door loan company.
the reason for not securing the loan would be if you think you are likely to default as you would lose your home - but some credit card companies have sucessfully taken a property charge even on an unsecured debt!
you also need to consider that your ability to get a good remortgage deal will be effected by your total level of debt on your home and the total monthly commitment from your income of all debts: secured or not | 01.07.11 @ 19:51