Paying off debts like credit cards can take years and consolidating these debts will reduce your outgoings and give you confidence knowing that you’ll be able to pay back what you owe on the mortgage in an affordable and single monthly payment.
How can I do this?
You can remortgage your entire debt to a new lender. If you have a mortgage of £100k, for example, and other cumulative debt of £50k, you could get a new mortgage with a different lender for £150k.
Alternatively, you could take out a new loan and secure it on your mortgage. For example, whilst you have a mortgage of £100k, you could take out a secured loan for £50 and essentially have two mortgages, or a second charge mortgage.
Should I choose debt consolidation?
If you’re struggling to keep up with repayments, then possibly.
Debt consolidation by remortgaging can lower your monthly payments and save you money overall.
However, you should note that, to remortgage, you will need to pay your charges to do so, such as arrangement and exit fees.
For advice on remortgaging to consolidate debts, speak to one of our expert advisers who will be able to help you with the next steps.