Are you looking to consolidate your credit card debts? Considering a credit card debt consolidation mortgage loan may seem like an easy way of dealing with your debt.

The first thing you must be aware of is that you will be moving ‘unsecured’ credit card debt into a mortgage. You may be reducing your monthly repayments with a lower rate of interest into a single mortgage repayment. But the lower interest rate and new loan (a mortgage) is not like credit card debt – an unsecured debt. A mortgage is ‘secured’ against the home. Such a move should be fully considered in detail before making any decision.   

It is worth pointing out that you will end up paying back more interest because you are likely to be paying this back over a longer period of time. However, by consolidating your debt into a mortgage you will be reducing your monthly outgoings, lowering your monthly repayments, which is usually the objective most people are seeking.

Specialist Mortgage Advice in Derby

Debts can have been accumulated on credit cards or other loans due to home improvements. In most instances, this may also have increased the value of your home. Other times it’s just that the debt has been outstanding and built up over time with additional expenditure all adding up, as a result, it can be hard to reduce this debt.

The alternative to consolidating your debts into a mortgage loan? You could consider taking out zero % credit cards and take the sensible step of looking for a new card when the zero % period ends. However, it’s not guaranteed that you can always get a transfer and it’s when that happens that homeowners decide to take action.

Consolidate debts into a mortgage is frequently preferable and more manageable than paying a double-figure interest rate.

Take advice when consolidation debt & remortgage

A debt consolidation loan in the form of a remortgage is not something most people would want to arrange without taking advice. With a Specialist Mortgage Broker in Derby, you will benefit from the consumer protection which is in place and a suitable tailored mortgage will be recommended for you. Note that the Broker works for you and not the lender so will ensure you get the right outcome.

Date Last Edited: December 6, 2023