Debt Consolidation Mortgages

Debt consolidation mortgages

Remortgaging a property can be a way to consolidate some of your debts and ease financial stress. But it can be a complex process, so we have specific consolidation mortgage brokers who are more experienced in this area.

What is a debt consolidation remortgage?

These types of remortgage can help to free up a lump sum of cash to pay off other debts and replace your current mortgage with a new one, with new terms and goal is to have just one repayment to deal with, generally at a better interest rate and better for you financially.

If you have sufficient equity in your property, a debt reconsolidation remortgage is where you remortgage your property to free up a lump sum of cash to pay off other debts. If you are struggling financially, you can use this to pay off debts, and it may help reduce your monthly outgoings.

The decision on whether it is suitable to remortgage to consolidate your debts will depend on your circumstances, affordability and the lender's criteria. We have helped several people in various financial situations find a mortgage solution for their needs. Still, as you would expect, it takes time and detailed knowledge, so we ensure that any remortgage to consolidate debt is dealt with by advisors experienced in remortgaging for debt consolidation.

Increasing your mortgage means that your monthly mortgage repayments will go up as a result.

Why not just take out a loan?

Financial problems can hit you for various reasons, are stressful and sadly experienced by an ever-increasing number of people. One option for many people is using a credit card or taking out another loan which may feel like the easiest and quickest way to pay off debts. And, while sometimes due to personal circumstances, it can be the right to do, you should be aware that this kind of lending usually involves higher interest charges.

Why use a broker?

You will note any trusted providers recommend you seek guidance from an independent mortgage broker as you will get advice and support throughout the process. Furthermore, as independent mortgage brokers, we are not tied to any one lender and thoroughly review the whole mortgage market, advising on the most suitable mortgage product for your circumstances.

What's the small print?

However, please note that while this may reduce the interest rate for your debts because the mortgage will be taken out over a longer-term, you will likely pack more over the term of your mortgage.

Due to the complexity and time involved, an upfront fee of £150 is required to begin researching remortgages for debt consolidation. The total payment will be £495 to cover all other costs, but this fee may be higher in very complex cases. However, we will advise you in advance of any potential costs.

Think carefully before securing other debts against your home. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.