Debt Consolidation Remortgage
- You’re tired of making several different loan payments each month and would like to combine them into just one payment
- You’re having trouble keeping up on the payments for your existing loans
- Your existing loans have varying interest rates and you’d like to lock into one rate for everything
- You want to reduce the amount of your monthly budget that goes toward loan repayment
- You’re looking for an easier way to pay off existing loan and become debt free
What is a debt consolidation remortgage?
Put simply, you can use the equity in your property to pay off other existing loans, resulting in just one monthly mortgage payment, as outlined by The Debt Line. This type of mortgage or remortgage is commonly used to combine secured or unsecured loans, credit cards, store cards and other personal finance, into one monthly payment making it easier to manage your overall finances.
Why Would I Want A Debt Consolidation Remortgage?
There are many reasons why you might want to seek a debt consolidation remortgage. For example, you may be able to reduce the total of your monthly loan payments and simplify your budget by making just one payment to a single mortgage provider. Or you may be having trouble keeping current up on your existing loans and need a way to make your payments affordable while repairing your credit profile over time. Consolidating your debts may mean it will take longer overall to become debt free, but in many situations it’s worth it if a consolidation remortgage will improve your overall financial well being.
I Have A Bad Credit Score And Don’t Think I Can Qualify For A Debt Consolidation Remortgage
While it’s true that many lenders won’t offer mortgages or remortgage to people with a bad credit rating, there are lenders who specialise in such a mortgage. Although lenders may charge a higher rate of interest the benefits of getting your debts under control often outweigh the additional costs involved.
If you are thinking of consolidating existing borrowing you should be aware that you will be extending the term of the debt and increasing the total amount you repay.
Adverse Credit/Credit Problems – The overall cost for comparison is 6.5% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.