Debt Consolidation in Bedfordshire, Hertfordshire & Buckinghamshire: Equity Release Products
Debt Consolidation
Debt consolidation remortgaging is when you take out a new mortgage to pay off other debts, such as credit cards and loans. This can be a good option if you have high-interest debts and want to save money on interest payments. However, it’s important to consider the pros and cons carefully before remortgaging for debt consolidation.
Pros of debt consolidation remortgaging
- You can get a lower interest rate on your mortgage than on your other debts.
- You can have just one monthly payment to make, which can simplify your finances.
- You can free up some cash each month, which you can use to pay off your debts faster.
Cons of debt consolidation remortgaging
- Your monthly mortgage payment may be higher than your current payments.
- You may have to pay fees for remortgaging.
- You may be extending the term of your debt, which means you'll pay more interest overall.
- You're putting your home at risk if you default on your mortgage payments.
How to decide if debt consolidation remortgaging is right for you
If you’re considering debt consolidation remortgaging, it’s important to get professional advice from a mortgage broker. They can help you compare different options and find the best deal for you.
Here are some things to consider when deciding if debt consolidation remortgaging is right for you:
- Your income and expenses
- The amount of debt you have
- The interest rates on your debts
- The fees associated with remortgaging
- Your credit score
- Your long-term financial goals
If you’re unsure whether debt consolidation remortgaging is right for you, it’s always best to talk to a financial advisor.
Here are some additional things to keep in mind:
- Not all debts can be consolidated into a mortgage. For example, you can't consolidate debts that are less than £1,000 or that have less than nine months left to repay, or debts of 0% at the time advice taken
- You'll need to have a good credit score to qualify for a debt consolidation mortgage.
- You'll need to make sure that you can afford the monthly payments on the new mortgage.
If you’re considering debt consolidation remortgaging, it’s important to weigh the pros and cons carefully and get professional advice before making a decision.
