Debt Consolidation Mortgage

Struggling to repay your debts?

There’s an answer, and it might lie within your mortgage.

Situations change, and it’s unfortunately easy for you to find yourself in financial difficulty if you have a number of debts against credit cards, store cards and personal loans.

The constant worry about money can cause problems at home and put a strain on relationships, but there’s a way out of this if you own your own home.

With a debt consolidation mortgage, you can use the equity in your property to release yourself from your debts.

How does it work?

With a debt consolidation mortgage, you will typically remortgage a larger sum that covers both your existing mortgage and any debts you want to consolidate.

Consolidating debts within a mortgage is a common way to deal with finances that are becoming difficult to manage. They’re popular, because most lenders will look for some form of security for the debt repayments, and the most common choice for that would be the family home. In this case, the additional mortgage that is reserved to pay off your debts becomes known as a ‘second charge’.

What are the benefits of a debt consolidation mortgage?

By entering into a debt consolidation mortgage, you rid yourself of the worry of managing and dealing with multiple debt repayments.

Let’s say you have several credit card balances, a couple of store cards and a personal loan for your car. By consolidating all of those debts into your mortgage repayment, you only have one, single payment leaving your bank account each month.
The interest rate will be fixed, there’s no danger of missing multiple debt repayments and, as a result, you’ll find it much easier to budget. There really is no better peace of mind when you have multiple debts to repay.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

Are there any risks?

Securing any form of loan against your home carries risk, because if you fail to make your repayments, the home itself could be at risk.

We recommend considering a debt consolidation loan for your mortgage very carefully, but we’d be happy to discuss the options with you. To find out more, please do not hesitate to contact our friendly team.

Why choose Debt Consolidation Loans?

We want to help you work towards a debt-free future, and we do that by offering an honest, no-fee service that you can rely on. The decisions we make aren’t contained within software; our team will take your unique situation into account and offer a fair decision on your debt consolidation loan.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.