Remortgage

Homeowners often choose to remortgage their property once they come to the end fo an existing deal in order to get a better interest rate, or in some cases to cover additional debt they may have. A debt consolidation mortgage allows you to release equity in your house to cover the repayment of any unsecure loans you may have elsewhere.

A debt consolidation mortgage is large enough to cover the cost of the existing mortgage, and to give you enough extra to allow you to clear your debt. This allows you to make one single monthly payment to your mortgage lender. A debt consolidation mortgage can be favourable as it gives a smaller interest rate over a longer number of years meaning monthly repayments are greatly reduced.

It does however mean that the total amount you repay is larger due to this. Additionally, this also puts greater risk on the possiblity of losing your home should you be unable to keep up with the repayments should interest rates rise with variable rate mortgages.