Consolidating unsecured credit into your mortgage is not a step to be taken lightly. We highly recommend you speak to an experienced Mortgage Advisor in Leeds, like us, and consider all your options before making that final decision.
You will typically pay back more overall by rolling unsecured credit into your mortgage. That said, your monthly payments will usually be at a low level.
You are also taking securing debt against your home. Be aware that If you do not keep up payments on a mortgage, then your home will be repossessed. In any case, this is very different from missing payments on loans or credit cards.
Over the years, obtaining credit has sometimes been too easy. It’s quicker for people to borrow money than save up. Sometimes people have invested in home improvements though which may have increased the value of their property. It’s hard to make inroads into paying back historic debt if it is accumulating interest. Not everyone qualifies for zero% credit card transfers.
Before consolidating credit, you should do a budget planner to analyse where you are spending your money each month. There may be some luxuries you can do without such as gym memberships, takeaways, and expensive coffees. Maybe a personal loan to consolidate your credit cards could be an answer. At least a loan has a set end date unlike credit cards, and since a personal loan gets typically taken out over a shorter term than a mortgage, then you may pay back less interest.
Maybe it’s worth speaking with a family member who may be able to help. It can be embarrassing for some people to talk with their parents about bailing them out but often if a family can help, then they will.
If all these avenues have been exhausted, then a debt consolidation mortgage might be right for you. It certainly is one way of reducing your monthly payments if you are struggling to save.
A debt consolidation remortgage is not something most people would want to arrange without taking advice. Speak to a Broker, and you will benefit from the consumer protection, which is in place, and a suitable mortgage will be recommended to you, tailored to your specific needs. Note that the Broker works for you and not the Lender so will ensure you get the right outcome.
The savings some people make are hundreds per month if they are carrying large debts and some people prefer to have everything within one monthly payment too