Remortgage to Consolidate Debt

You will normally pay back more overall by rolling unsecured credit into your mortgage. That said, your monthly payments will normally be lower and for some people that is their main priority.

You are also taking securing debt against your home. If you do not keep up payments on a mortgage then your home will be repossessed. This is very different to missing payments on loans or credit cards.

Over the years, obtaining credit has sometimes been too easy. It’s quicker for people to borrow money than save up. Sometimes people have invested in home improvements though which may have increased the value of their property.

It’s hard to make inroads into paying back historic debt if it is accumulating interest. Not everyone qualifies for zero percent credit card transfers.

Before consolidating credit, you should do a budget planner to analyse where you are spending your money each month.

There may be some luxuries you can do without, such as gym memberships, takeaways and expensive coffees. Perhaps a personal loan to consolidate your credit cards could be an answer.

A loan has a set end date, unlike credit cards, and since a personal loan is typically taken out over a shorter term than a mortgage, you may pay back less interest.

It may be worth your time speaking with a family member and asking for help. This is not something you should be embarrassed by, as more often than not, if they can help, they probably will.

Many people use a remortgage to release equity from their homes. You are allowed to raise capital for many different reasons to raise funds to gift to your children, perhaps to get them onto the property ladder themselves.

If all of your avenues have been exhausted, then a debt consolidation mortgage might be right for you. It certainly is one way of reducing your monthly payments if you are struggling to save.

As an open & honest mortgage broker, we will take a look at your situation and help you to decide whether this is the best option for you to take.