Debt Consolidation

In certain circumstances, a homeowner loan can be used for debt consolidation

Many customers use a homeowner loan to raise capital to repay or refinance debt.  Homeowner loans are alternative to a remortgage to raise cash for this loan purpose, however, you should carefully consider the implications of securing unsecured debt, such as credit cards and unsecured loans.  You are in effect converting unsecured debt into a secured debt, resulting in you home being at risk of repossession if you do not keep up repayments on this new mortgage or other loan secured against it.  Additionally, whilst refinancing debt by way of a remortgage can reduce your monthly commitments, you can actually end up paying more back in mortgage interest over term.

 

You should certainly consider closing those credit card and loan accounts completely to ensure that your situation is improved and that you do not use those credit facilities again - this building up more debt.

 

Debt consolidation homeowner loans can provide the right solution, in certain circumstances and our impartial homeowner loan experts will discuss the pros and cons of doing this.  To speak to one of our mortgage advisers call 01785 878 555 or fill in this form opposite and one of out friendly team will call you to discuss your individual remortgage requirements.

Apply Now!

By submitting this form you agree to transfer personal data in accordance with our Privacy Statement

Ask Expert

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR
PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP
REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

 

CALLS ARE RECORDED FOR TRAINING AND MONITORING PURPOSES

Legal Information

.The Money Bee, which is a trading style of Promise Solutions Ltd and is authorised and regulated by the Financial Conduct Authority– Number 681423. Registered in England, company number 04822774. Data Protection Reference Z8661889
Registered Office: 2nd Floor, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG.

Terms and Conditions

There may be circumstances where we need to charge a fee.  In these instances, we will notify you at an early stage which could be £125.00 upon application and an arrangement fee up to 1% of the advance subject to a maximum of £2500.00, on receipt of the mortgage offer.

Follow Us

  • White Facebook Icon
  • White Twitter Icon
  • White Instagram Icon

Contact Us

2nd Floor, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG.

2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:

 

Mortgages and Remortgages

Representative example

£80,000 over 240 months at an APRC OF 4.3% and a discounted variable annual interest rate for two years of 2.12% at £408.99 per month followed by 36 payments of £475.59 and 180 payments of £509.44. The total charge for credit is £39,873 which includes a £995 broker/processing fee and £125 application fee. Total repayable £119,873.

 

Secured / Second Charge Loans

Representative example

£63,000 over 228 months at an APRC OF 6.1% and an annual interest rate of 5.39% (Fixed for five years – variable thereafter) would be £463.09 per month, the total charge for credit is £42,584.52 which includes a £2,690 broker/processing fee. Total repayable £105,584.52.

 

Unsecured Loans

Representative example

£4,000 over 36 months at an APR OF 49.9% (fixed) and an annual interest rate of 49.9% would be £216.21, total charge for credit is £3,783.56. Total repayable £7,783.56.