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Manage Your Debt with Debt Consolidation Mortgages

Struggling with debt? You’re not alone. Speak with an expert debt consolidation advisor and find the options available for you.

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Useful Links To Begin Your Debt Consolidation Journey

Remortgaging

When you are after advice on switching your mortgage lender, we can help you with each step of the way.

Purchasing A Second Home

When it’s time to buy a second home, look no further than us for a mortgage adviser. We take the stress out of your mortgage deal.

For Home Improvements

Finding the funds you need to transform your home can be complicated. Our expert remortgaging advisors are here to take out the stress.

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With The Same Lender

Looking to remortgage with your current lender? Our mortgage advisors are here to help you secure the right product for your needs.

How a Mortgage Broker for Debt Consolidation Can Help You

Remortgaging is a perfectly suitable way of consolidating your debt. Through this method, you can use the equity you have in your home to pay off some personal loans and bring the remaining debt together into a single secured loan. As a result, you will have one monthly repayment to make that will be chipping away at all your debt at once.

Do you think remortgaging for debt consolidation might be right for you? Contact our friendly advisors today and we’ll discuss all the implications, whether you opt to remortgage with the lender you have your existing mortgage with or seek to find a better deal elsewhere. We’ll help you come to an informed decision, and then, once you’re happy, we can put the plan into action and find you a suitable deal if a new mortgage lender is considered the right way to go.

Remortgage for Debt Consolidation: Lower Your Monthly Payments

It can be upsetting and scary to have debts stacking up and no clear way out, but you’re not alone. We know life can be complicated and a range of circumstances may have led to your outstanding payments. If you want to remortgage for debt consolidation, we can help you navigate the process and achieve the best result for you.

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Have you been struggling with debt?

You’re not alone. Our experienced remortgaging advisors are here to explain the options available to you when it comes to debt consolidation mortgages.

Remortgaging can be an effective way of consolidating multiple outstanding debts into a single monthly repayment. This single outgoing cost can be lower than what you’re currently paying because a mortgage term is longer than many other loans. However, there are implications to consider, and this method of debt consolidation isn’t necessarily right for everyone.

If you’re thinking about remortgaging to pay off or consolidate your debts, it’s important to get expert advice. An expert mortgage broker from our team will listen to your story without judgement and provide bespoke recommendations based on your circumstances.

Benefits of Working with a Mortgage Broker for Debt Consolidation

Remortgaging can help you address your debts in two principal ways. Releasing equity can provide you with a lump sum of money which you can use to pay off major debts. Or you could remortgage your property which would consolidate all your outstanding debts, including credit card debt, into a single loan with a single repayment plan. This rationalisation of your debts can make them easier to deal with.

Ultimately, the decision is yours alone to make, but our expert mortgage advisors will provide you with all the insights and guidance regarding secured loans and other borrowing options so you can make the right choice for you. Whatever you decide as the way forward to consolidate debt, we’ll be there every step of the way to ensure you get the right result for you from a mortgage provider.

Turning Your Nightmares Into Dreams

When you think you’ve hit that brick wall and have all but given up hope of finding mortgage finance, When the Bank Says No are here to turn your ‘No’ into a ‘Yes’. We have access to a range of specialist lenders who are willing to help those that the High Street banks just won’t touch. Get in touch today and see how we can turn your dreams into a reality.

I've been declined for a mortgage due to debt, should I consolidate them?

It is common for mortgage applications to be declined due to the overall debt-to-income ratio being too high for the lender’s specific criteria. If your current debt exceeds or approaches your current income, the risk may be too high for both your existing lender or a conventional high-street lender.

More than that, where lending policy decisions are made through an automated system, you may be declined without a human ever properly assessing your application. Don’t despair, not all lenders rely on this debt-to-income test to make a decision, and an experienced mortgage advisor will be able to guide you towards these more appropriate specialist lenders with better options for you.

Will a debt consolidation remortgage help reduce my monthly payment?

It depends. If you take a short-term debt and remortgage you are effectively spreading that debt over a much longer loan term. This will most often result in cheaper monthly repayments. However, it’s important to bear in mind that the interest rates will also be charged over a longer period, meaning you are making many more monthly payments and therefore could end up paying more overall.

Our highly experienced team will help you work out the potential savings and costs to repay, so you can decide on the best course of action for your particular circumstances. If you are looking for debt consolidation remortgages as a way out of your existing debts, get in touch today!

Debt Consolidation mortgage FAQs

Can I remortgage for debt consolidation and home improvements at the same time?

Yes, it’s possible to borrow funds for multiple uses through remortgaging, and many lenders will be happy to consider applications on this basis. As long as you have sufficient equity in your current property, you may find a suitable remortgaging deal to help you accomplish both of these aims.

Before you launch into anything though, take the time to get advice from a qualified mortgage advisor. They’ll be able to work out your overall affordability and Loan to Value based on current equity and source the best deal available to your circumstances and current credit rating.

What are the advantages of a remortgage for debt consolidation?

Debt consolidation allows you to rationalise your monthly loan repayments into a single cost. This will reduce your monthly outgoings and provide you with more disposable income. The reason for this is that the debts you had will now be repaid over a longer period of time – the term of your mortgage. Another advantage of this method is that the interest rates on mortgages tend to be much lower than the average rates for unsecured loans.

What are the disadvantages of debt consolidation?

Consolidating debt into a mortgage means they are paid back over a longer period. This means the monthly repayments are likely to be lower, but since you will be charged interest throughout this period, you may end up paying back more overall.

Also, you will be securing your debts against your property, effectively it’s a secured loan, which means your home is at risk of being repossessed if you do not regularly meet your monthly payment schedule.

Finally, you will be reducing the amount of equity you have in your property, which will impact you if you decide to sell or reduce the value of your estate if you pass away.

What debts can I consolidate with a mortgage?

A mortgage can be used to consolidate a range of different unsecured debt including credit cards, personal loans, payday loans, overdrafts. Instead of having to make multiple payments with varying interest rates each month, all your existing debts can be switched to one lender and one monthly payment.

I'm still tied into my 5-year mortgage deal and my lender declined my additional borrowing. What can I do?

It can be extremely frustrating if you’re currently tied into a mortgage deal and your current lender has refused additional borrowing. There are a few options open to you. Firstly, you could wait until the end of your current mortgage deal and remortgage to a new lender when early repayment charges end. Or, if you need to remortgage early, you could bite the bullet and end your existing mortgage term early and pay the early repayment charges. To work out which route ends up being more cost-effective in the long run, talk to a specialist remortgaging advisor. You could also consider other forms of borrowing for debt consolidation.

My circumstances have changed from when I first took out a mortgage. Will I still get a good rate for a debt consolidation mortgage?

Lenders will offer the best interest rates to those with good affordability. If your circumstances have changed for the worse, then this could affect the sort of rates you might be offered. Factors such as fluctuating income from self-employment, a change in your credit history, or even the fact that you are older and potentially much closer to retirement age, can all affect the rate you might be charged for a mortgage. When your personal situation has changed and you have bad credit issues, are struggling to pay debts, or even may have CCJs against you, that’s when you could probably benefit from some financial advice from an expert mortgage advisor. There are some specialist lenders who may be more willing to help people with bad credit who need to consolidate their debts by remortgaging.

Can I release equity to pay off (consolidate) debt instead?

Equity release can be an alternative if you want to pay off unsecured debt. This way will use some of the equity from your property to clear other debts such as credit card debts, bank loans, CCJs and IVAs. This effectively moves some of your unsecured debt to secured debt. Equity release will provide you with a sum of money secured against your property, which will only be repaid, along with an interest, when you pass away or move into long-term care. This is a good option for some as it means you do not have to make any payments towards equity release. The downside to this method of consolidating debt is that it still accrues interest (which while it could be lower than the interest rate of your current debts) will still build up during the length of the plan. You can, however, opt to make payments towards the equity release, so it could still be a cost-effective way of consolidating debt. Many people choose this method when they are struggling to make their payments every month, as it gives them the flexibility of choosing to pay or not, and it can be more cost-effective than continuing to pay existing debts and personal loans. However, it may not be the best option for everyone and this is where the expertise of a mortgage advisor from When the Bank Says No can be invaluable.

Expert remortgaging advice to consolidate debts.

Consolidating debt may reduce your outgoings now, but what about in the long run? It’s critical you think carefully before securing any debts against your home. There are many options available to you, and an unsecured loan, such as a personal loan, may be a better option – it all depends! When the Bank Says No has helped support many people in similar situations as they evaluate the way forwards. If you want transparent information and no-nonsense advice, our team of experienced mortgage advisors is here to clear things up.

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