Debt consolidation is the process of repaying several credit arrangements such as credit cards, personal loans and store cards with one new loan or mortgage. Another term for this could be capital raising where you raise capital to repay other debts. The advantage when you consolidate debt is that you then only have one monthly payment to make. When consolidating debts it is often possible to reduce the monthly repayment amount by a lower interest rate or by extending the repayment term. (although the total interest paid is higher).
You can get a debt consolidation mortgage to repay more expensive credit cards which some call a credit card debt consolidation loan. You can also repay loans, store cards or HP etc. This will leave you with only one mortgage payment each month which is lower than the total monthly cost of all the credit previously. Obviously a debt consolidation morgage loan will be at mortgage interest rates so should be much cheaper.
As whole of market mortgage brokers we can help you with a debt consolidation loan uk or uk debt consolidation mortgage loan. Many lenders have different rules when mortgages are for capital raising or debt consolidation so having an experienced mortgage broker on your side will certainly help you. We will undertake all the questioning and investigations for you so that we can find the best debt consolidation mortgage for your circumstances. Interested? Please contact us today.
When you want to consolidate unsecured debt there are a few options available:
- You could ask your existing mortgage company for a further advance for consolidating debts
- You could remortgage and capital raise at the same time to repay unsecured loans and credit cards
- You could take out a secured personal loan or a debt consolidation secured loan. These are also known as second charge loans
Your employment status and your credit history will normally affect which option you take but we can help if these are a problem. If you would like advice from an experienced mortgage broker about these options then please contact us.
- We are whole of market mortgage brokers giving you maximum choice
- We will always try and get the best deal for YOU
- We will not charge high brokers fees (unlike some others)
- Contact us today for expert and impartial debt consolidation mortgage advice
The overall cost for comparison is 7.9% APR The actual rate available will depend upon your circumstances. Ask for a personalised illustration.