Have you already broken your New Year’s resolution to take better control of your finances? January can often feel a little blue, especially if you are amongst the millions of people nursing a post-Christmas financial hangover. Rather than fretting, there are positive steps you can take to reduce your monthly outgoings. One such way is debt consolidation.
Are you juggling with costly unsecured borrowing (on store or credit cards for example)? Then it is likely that you will be paying significantly more interest. Therefore you may be making higher monthly payments than if you were to consolidate your borrowing into one secured loan.
When you consolidate debt, not only can you reduce your monthly outgoings, you can also put in place an achievable plan to pay back what you owe.
How does a debt consolidation mortgage work? Typically, you take out a mortgage that is large enough to pay off an existing mortgage, whilst also covering other existing debts. There are two main options: Remortgage or Second Charge Mortgage.
A remortgage allows you to switch your existing mortgage and any other outstanding debt to a new deal. This could either be with your existing lender or a new provider. The new mortgage is secured against your existing property.
Your second charge mortgage, also known as a ‘secured loan,’ works just like a normal mortgage. It is secured against your current property, however, the loan is granted by a different lender, on different terms. This gives you the freedom to secure the best deal, without changing your existing mortgage provider.
Get 50% Off Our Broker Fee This January
With a quick call to Ingard, we can help you get your finances back on track.
Considering a remortgage for debt consolidation purposes? You can get 50% off our mortgage broker fee* when you make an application with us before the end of January. To claim your discount, call us on 01702 533 400 or email firstname.lastname@example.org, quoting reference here.