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DEBT CONSOLIDATION
MORTGAGE

By consolidating any outstanding loans or credit cards you may be able to reduce your monthly outgoings

Call us for debt consolidation advice:
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We work closely with the major mortgage providers to bring you the best deal

What is a Debt Consolidation Mortgage?

A debt consolidation mortgage is the process of raising capital in order to secure previously unsecured debt, with the objective of either reducing their total monthly outgoings or to pay back debts more efficiently.

Some people find it difficult to make ends meet when they have to juggle numerous unsecured and secured debts – consolidating the debt may not only reduce your overall outgoings but it may help you to repay the debt over a more comfortable time frame.

Our advisers will consider the overall costs of repaying your debts and compare them against a debt consolidation remortgage. This will help you to make an informed choice as to whether debt consolidation is the right option for your situation.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Get in touch to us to get started:

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Speak to our expert advisers today for assistance

Here at Mortgage Wise we are happy to offer help and advice. Ask us anything!
Your home may be repossessed if you do not keep up repayment on your mortgage
Call us for debt consolidation advice:
Can't chat now?

Your guide to debt consolidation

Is debt consolidation right for me?

Without speaking to an advisor it can be difficult to know the true overall costs and whether or not a debt consolidation mortgage is the right solution for you. It is important to consider the new overall interest costs of repaying your debts within your mortgage. It is also important to understand that whilst repaying debts within the mortgage can potentially save you money, it could also end up costing more in the long run.

The advantages of debt consolidation

  • Can reduce overall monthly outgoings
  • The rates may be lower than taking a loan or a credit card
  • It can help you return to savings each month
  • You may end up paying back less interest!

The disadvantages of debt consolidation

  • You may end up paying back more interest
  • It may take you longer to pay back your debt
  • You will reduce the amount of equity available in your home
  • Your home will be at risk if you fail to meet your repayments

How can I consolidate debt into my mortgage?

  1. Remortgage to a new lender

If you already have a mortgage, it may be the best option to shop around and move to a new lender who can offer a better deal when it is time to remortgage. For example, if you have an £80,000 mortgage and £20,000 loan by taking £100,000 with a new lender, you will be able to have one lower monthly outgoing which could be on a more desirable interest rate.

  1. Taking additional borrowing with your existing lender (further advance)

It may be that you already have a really good mortgage deal for your existing borrowing. In this circumstance taking additional borrowing with your existing lender may be a more suitable option so as not to sacrifice your existing rate.

  1. Taking a new loan with another provider (second charge lending/secured loan)

There are a number of reasons that you might struggle to get approved for a standard mortgage (first charge). For example; maybe your employment status has changed or you have an adverse credit history. In this circumstance, a second charge mortgage may be more appropriate. Second charge lending does not impact your existing borrowing and the barriers to entry are sometimes not as high as first charge lending.

Advantages of second charge lending

  • Good for people who have a poor credit rating or a history of adverse credit
  • Can be an option for those refused a high street or first charge mortgage
  • It won’t affect your existing borrowing

Disadvantages of second charge borrowing

  • It can be more expensive than first charge borrowing
  • It may have higher fees than first charge borrowing

How can I reduce my monthly outgoings?

By consolidating debts it may be possible to reduce your overall monthly outgoings because the interest rates are generally more competitive. In some circumstances, a mortgage may also allow you to take your debts over a longer term than unsecured lending would allow; this can help to bring the lending down.

How can I repay my debt quicker?

For some people, paying back their debts quicker and more efficiently is the main objective of a debt consolidation remortgage. In this case you might decide to consolidate the debt into your mortgage and overpay your mortgage by the same amount and for the same term as your current unsecured deal. This would mean that you could pay back your loan at a more preferential interest rate and this could also have a positive effect on your overall mortgage interest rate and term.

Our Testimonials

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Looking to buy your first home? The first step in getting a mortgage would be to sit down with us and discuss your circumstances and what type of mortgage you are looking for. There are several types of mortgages, each suiting different people’s circumstances.

Your home may be repossessed if you do not keep up repayment on your mortgage

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Are you looking to move home? Whether you're looking to upsize or downsize your property, it's important that you get the correct advice. Speak to Mortgage Wise today to discuss your options.

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Buy to let mortgage

A buy to let property is a property investment of which you rent out the property for profit. A buy to let mortgage would be secured against a property of this sort.

Your home may be repossessed if you do not keep up repayment on your mortgage

The Financial Conduct Authority does not regulate Buy to Let mortgages

First Time Buyer

Looking to buy your first home?  The first step in getting a mortgage would be to sit down with us and discuss your circumstances and what type of mortgage you are looking for. There are several types of mortgages, each suiting different people’s circumstances.

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Your home may be repossessed if you do not keep up repayment on your mortgage

Moving Home

Are you looking to move home?  Whether you're looking to upsize or downsize your property, it's important that you get the correct advice.  Speak to Mortgage Wise today to discuss your options.

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Your home may be repossessed if you do not keep up repayment on your mortgage

Remortgage your home

You may want to remortgage for a variety of reasons including securing a lower interest rate, consolidating debt or raising capital for home improvements.

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Your home may be repossessed if you do not keep up repayment on your mortgage

Buy to let mortgage

A buy to let property is a property investment of which you rent out the property for profit. A buy to let mortgage would be secured against a property of this sort.

The Financial Conduct Authority does not regulate Buy to Let mortgages.

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Your home may be repossessed if you do not keep up repayment on your mortgage