Debt Consolidation

Mortgages

Mortgage advice that’s as unique as you are

If you’re juggling several credit cards, loans or other borrowing, consolidating your debts into a single, more manageable payment can ease the financial pressure. There are many different ways to consolidate debt, so it is important to get the solution that is most suitable for your needs.

To help you make the right decision we have put together our Top Tips for debt consolidation:

How much could I save?
Bringing several debts together, potentially at a lower overall rate, can reduce your monthly outgoings, though it’s important to look at the total cost over the full term and not just the monthly saving.

How much equity do I have?
If you’re a homeowner, consolidating debts through a remortgage or secured loan will depend on the equity available in your property and your ability to afford the new repayments.

Have you considered the extra costs?
Consolidation options can come with arrangement fees, early repayment charges on existing borrowing, and legal costs, so these should be weighed up against the savings on offer.

Secured or unsecured?
Consolidating unsecured debts, such as credit cards, into a mortgage or secured loan can reduce your monthly payments, but it does mean those debts become secured against your home.

Know your full financial picture.
Being upfront about everything you owe helps us build a clear, realistic plan and find the option that actually improves your situation rather than just moving the problem.

Think about the term.
Spreading debts over a longer period can lower your monthly payments, but it may mean paying more interest overall, so it’s worth understanding this trade off before deciding.

Remember consolidating debt is a long term commitment, and there are lots of different solutions available, so it is important you get the right one for you.