Consolidating Credit Card Debt into a Mortgage

Considering consolidating credit card debt into your mortgage may see like an easy way of dealing with your debt.

You will be moving unsecured credit card debt into a mortgage. Consider this move wisely and in detail before you decide. You may be reducing your monthly repayments with a lower rate of interest in a single mortgage repayment. But the lower interest rate and new loan (a mortgage) is not like credit card debt – debt which is unsecured. A mortgage is secured against the home.

You also will probably be aware 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 replaymets, which is usually the objective most people are seeking.

Debts can have been accumulated 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 for several years with additional expenditure in different areas and it can be hard to reduce this debt.

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 rather than pay a double-figure interest rate is often preferable and more manageable.

Take Advice When Looking at Debt Consolidation & Remortgage

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

The savings some people make are hundreds per month if they are carrying large debts and some people prefer to have everything within one monthly payment too.