Debt consolidation was all the rage when the housing market was rising, where home owners re-mortgaged their property and added their unsecured debts to the new mortgage loan, in order to reduce their monthly outgoings. Unfortunately with falling house prices and mortgage lenders becoming more cautious and some would say responsible, homeowners were left with no option other than to tighten their belts and live within their means as new lenders were no longer looking to take on this type of lending.
Now with rising house prices and greater mortgage availability debt consolidation is now on the rise, if you are considering a re-mortgage the important thing is to get advice, so you are aware of all the facts and the best options to suit your individual circumstances.
In favour of debt consolidation is the fact that you can group all your debt into a reduced monthly payment and get your outgoings back under control, the down side is that as you will be extending your debts over a longer term, you will pay more interest in the long term and of course these unsecured debts will now be secured on your property albeit wrapped up in the new mortgage.
If you are considering a re-mortgage contact a member of our mortgage team on 01934 519111 or visit us at www.fish4mortgage.com