Debt consolidation mortgages

Could a debt consolidation mortgage help you simplify your finances?

A debt consolidation mortgage can allow you to repay existing unsecured and even secured debts by adding them to your mortgage or remortgaging for a larger amount. It is often used to clear borrowing such as credit cards, loans and overdrafts, leaving you with one monthly payment instead of several. Some UK lenders do offer this type of borrowing, although it depends on your income, credit profile, equity in your property and affordability.

Why do people use debt consolidation mortgages?

People usually consider debt consolidation mortgages when they want to reduce their monthly outgoings, simplify their finances and replace more expensive unsecured borrowing with one mortgage payment. In the right circumstances, this can help people restructure their finances and make budgeting easier.

What debts can be repaid?

Debt consolidation mortgages are commonly used to repay:

• Credit cards
• Personal loans
• Car finance
• Store cards
• Overdrafts

The types of debts accepted can vary from lender to lender.

Are there any risks?

Yes. The main risk is that you are turning unsecured debts into secured borrowing against your home. That means your property could be at risk if you do not keep up with repayments. It can also cost more overall if the debt is repaid over a much longer mortgage term, even if the monthly payment is lower. Regulators have also warned that debt consolidation is not right for everyone and should only be used where it is genuinely suitable. Some borrowers repay their debt and then build it up again.

Call Trinity on 020 7016 0790 to secure a debt consolidation mortgage.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage