Home owner debt consolidating mortgage
Typically, you will be able to borrow a higher amount and release a higher percentage of equity to pay off debts or pursue new avenues.
This can result in lowering your monthly payments and paying back less overall, as long as you keep on top of repayments.
Unsecured debts such as loans or credit cards don’t impact on your home if you miss payments; a debt consolidation loan secured on your home will.
It is sometimes possible for you to remortgage your property to another lender and to borrow additional funds to consolidate your existing debts.
The amount of the loan and the interest rate is typically determined by: Secured homeowner loans allow you to borrow against the value of your property in order that you can repay other debts.
Interest rates on credit cards and personal loans are often high.
Banks and building societies have tightened up their lending criteria and it is now much more difficult to secure mortgage finance.
To remortgage in the current market you typically have to earn more and have more equity in your home than ever before.
A debt consolidation mortgage is a situation in which you can take out another mortgage to pay off your existing mortgage and other debts.
It’s a quick way of making ends meet and a way reducing your monthly outgoings by structuring a regular payback term which is more comfortable and affordable to you.
By simplifying multiple payments into one manageable one, lots of people manage to lower their monthly outgoings and decrease their interest rates, as well as paying debts off quicker.
Remortgaging to consolidate debts can be a sensible solution to borrowing more money.
In doing so, you could potentially reduce the cost of your overall debt, when you take into account interest and rates and repayment terms.
Taking out a mortgage with a new lender for the combined amount of your existing mortgage and debts, is one way of remortgaging to consolidate debt.