Debt Consolidation
Debt Consolidation is similar to re-mortgaging
as it involves adding your existing loans and credit balances
to your mortgage. This is a good way of bringing down your
total monthly outgoings if money is tight. There has to be
sufficient equity in your property to do this. It is important
to realise that the value of your house could reduce in the
future therefore most lenders will restrict you to borrowing
a maximum of approximately 90% of the value of your home.
Debt consolidation is becoming more and more popular, especially
with the rise in mortgage rates coupled with high credit card
balances and loan commitments. It is a way for people to sort
out potential problems before they get into trouble.
By switching your mortgage to another
lender you will be charged the same rate on the whole loan,
but if you stay with your existing provider there is a good
chance that they will charge you a higher rate for the additional
borrowing.
You can still consolidate your loans
and credit cards even if you have missed payments and are
suffering financial hardship, so please complete our enquiry
form and see what we can do to help.
By consolidating debts into a mortgage
you may be required to pay more over the entire term than
you would with your existing debt.
Think carefully before
securing other debts against your home. Your home may be repossessed
if you do not keep up repayments on your mortgage.
Details
of our fees can be found here.
The FSA does not regulate Commercial
Mortgages or some forms of Buy to Let Mortgages. |
