⚠️Your home may be at risk if you do not keep up repayments on a mortgage⚠️
Could you benefit from securing unsecured debt to your mortgage?
Do you have credit cards, loans, or other personal unsecured debt? If you’re a homeowner, you may be able to consolidate any unsecured debts into your mortgage. In turn, this may make your debt more manageable.
By remortgaging your home, you can include any unsecured debt into the new mortgage. This could make your monthly payments lower. However, by borrowing over a longer term, your unsecured debt would likely cost you more over the term of repayment.
Example:
Personal Loan – £10,500 over 5 years:
Monthly Payment = £217.45
At 8.9% APR, Total Repayable £13,047.21
Total interest = £2,5470.21
Mortgage Consolidation – Add £10,500 to your mortgage over 20 Years
Monthly Payment = £75.00
At 6% APR, Total Repayable £18,057.00
Total interest = £7,557.00
The above are illustrations are for examples only and don’t represent a quote. Your monthly payment is reduced, but the total interest you pay is increased. If mortgage consolidation is something you’re considering, please seek the advice of a mortgage advisor.
Pros and Cons of a Mortgage Consolidation Loan
Pros of Mortgage Consolidation Loans:
✅ Lower monthly payments
✅ Lower APR % rate
✅ Monthly outgoings are more manageable
✅ More disposable income each month
Cons of Mortgage Consolidation Loans:
❌ The debt will cost you more
❌ Securing debt against your home puts your house at risk if you don’t keep up with repayments
❌ Reduce the amount of equity in your home
What Next?
Ready to find our more about mortgage consolidation loans for you? Give our friendly brokers a call on 0800 066 2882 or apply online.
Quick, Easy Approval
On average loans are approved within 60 minutes of submitting your details to us
