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Debt
Consolidation
Debt Consolidation is similar to remortgaging
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 85%-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 out for people 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 and just borrow extra money then they are likely to 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.
Think carefully before securing other
debts against your home.
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