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.