Search and Compare The Best UK Mortgages to Consolidate Your Debts

Debt has become a defining issue of the early 21st century in the UK, with collective personal debt seemingly on the rise to record levels every year. There is little wonder, then, that managing debt is becoming a central part of many people’s household budgeting.

One option to consolidate debt is to use your mortgage – Debt consolidation is not a particularly new idea, it basically means taking up a series of expensive debts and replacing them with one single debt, which would have a lower interest rate, which will significantly reduce the monthly cost of repaying the total debt. By finding a cheap, low rate debt consolidation mortgage, one which will allow you to consolidation unsecured loans, credit cards and HP agreements, the result will be that you will be that you will be paying much less in interest each month, making the repayment of your total debt more affordable on a monthly basis. Although you must be aware that extending unsecured debt over a longer term and featuring as secured debt on your property means that if you fall behind on your repayments, then your home could be at risk from repossession. However in certain situations, it is recognised as being an acceptable way of dealing with or overcoming situations where the debtor cannot meet their monthly repayments, as after the consolidation, they are provided the ability to remove the affordability pressures of debt, but they consumer must be aware that they should not run up more unsecured debts, as this process is not one that can usually be repeated.

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Selecting the Best Debt Consolidation Mortgage in the UK

If you have debt from a number of different sources, for example a mortgage, loans and credit cards, debt consolidation mortgages could help reduce your monthly outgoings. As mortgages typically have a lower interest rate than unsecured loans and credit cards, if you consolidate your debts with mortgages, you will be repaying the debt at a lower rate of interest. Another advantage if you consolidate your debts with mortgages is that you are likely to be giving yourself more time to pay off the debt, again, reducing the amount you have to pay each month.

How much can I save with debt consolidation mortgages?

To see how much you could save, simply state how much your property is worth and the total amount you need to borrow, and the consultanr will do the rest for you. The monthly payment column of the table will show how much you will pay each month once you have consolidated your debts, so you can quickly see how much you will be saving. Depending on a combination of your current loan to value ratio of your home, the level of your debts and the interest rate you are paying, this could be hundreds of pounds a month.

Is consolidating my debts with a mortgage the right move for me?

Whether or not debt consolidation mortgages are right for you will depend on your personal circumstances. Firstly, you will need to have enough equity in your property for a mortgage company to agree to it. As a rule of thumb, if your mortgage is already at or above 80% of your home value, to consolidate your debts with mortgages is unlikely to be a viable option. If it is less than this, it will depend on the value of your home and the size of your other debts.

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