Consolidating Mortgage and Loans

Are you looking to wrap up your loans into one easy payment?

A debt consolidation remortgage can appear to be an attractive solution. Particularly if you are looking to reduce your monthly outgoings or if you would find it easier to manage your money with just one monthly payment to cover all borrowing. If you have borrowing on credit cards and store cards, this is likely to be at very high interest rates whereby the minimum payment each month covers little more than the interest.

That said, it does deserve serious consideration, as a debt consolidation remortgage will mean that you are securing previously unsecured debts against your home. And if you are applying for your second or third debt consolidation re-mortgage it is likely that you may need more specialist advice that simply borrowing more money against your home to settle the debts built up over the past few years.

At Harvey Bowes, we work hard to make sure you get the right advice and the right mortgage deal. Depending on the level of debt you are looking to consolidate and whether it is loans or credit cards, you could reduce your monthly outgoings by £100’s per month.

It could be your chance to re-set your borrowing and get back some of that disposable income you need to live, especially due to the price of food and fuel which seems to be going up and up.

Scroll down to see some of the case studies, which show what the team at Harvey Bowes have achieved:

Mr & Mrs Smith* from London came to Harvey Bowes with a £308,000 mortgage on a property worth £1,100,000. They also had nearly £70,000 of credit card debt. This was not because of reckless spending, but because Mr Smith lost his job with no insurance to protect him against redundancy and only the one household income, they survived by funding themselves via Credit Cards until he found another job.

Although Mr Smith had found work again, he was 55 years of age with an interest only mortgage and significant credit card debt. He did not know which way to turn. His mortgage payment was just over £1800 per month and the credit cards cost £2350 per month in total just to service the minimum payments.

We recommended that the family took a mortgage of £370,000 which was the maximum they could borrow. This allowed them to get almost enough to redeem all the extra borrowing. We also recommended a repayment mortgage so that the balance is reducing each month and the whole amount would be paid off by retirement. The cost of this new mortgage on a fixed rate was £2,200 per month. A saving of almost £2,000 per month and being transferred from interest only to repayment.

At Harvey Bowes, we encounter many people who want to wrap up debt, from as little as a couple of thousand pounds to significant sums as above. They key to deciding whether to consolidate debt by remortgage is whether you can be determined not to run up sundry debt again, be sure you are happy securing previously unsecured debt against your home and whether you are prepared to pay the debt off over a longer term—as although the interest rate could be lower, any loans you may have are likely to be over a shorter term than a mortgage in a typical scenario. Why not talk to a member of the team at Harvey Bowes today, and get some straight talking advice about your options on 02921754150

 *The names Mr & Mrs Smith have been changed to protect the identity of our client. 

To make an enquiry, please contact us on 02921754150

or complete the enquiry form below and we will get back to you

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Think carefully before securing other debt against your home.

Your home may be repossessed if you do not keep up repayments on your mortgage

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