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.