When you consolidate a mortgage you merge a first and second mortgage, refinancing the lot into a single loan, ideally with a lower interest rate. Mortgage consolidation is much the same as re mortgaging or refinancing, but involves more than one property. The aim is to collect all your mortgage debts into one place, for convenience and to save money. Many people find that consolidating mortgages is the perfect way to get out of financial trouble.
The advantages of mortgage consolidation
You have two properties and two separate mortgages. Or a second mortgage on one property. One has seventeen years to run, the other twenty two years. Each has a different interest rate, and the interest rates on both are pretty steep.
Mortgage consolidation can help. By consolidating two mortgages you can get rid of your higher interest rate loans and enjoy one single lower rate, saving you a lot of money. Choosing a longer repayment time, say for 25 years, also spreads the cost and helps reduce your monthly repayments, although you will probably end up paying more overall.
Mortgage consolidation can help you:
• Lower your monthly mortgage repayments
• Avoid repossession
• Reduce the risk of bankruptcy
• Make stressful mortgage repayments manageable
The disadvantages of mortgage consolidation
Mortgage consolidation comes with risks. If you are paying you mortgage off over a longer time, you will be paying more in total interest… a lot more! And if you default on your repayments, you still risk repossession.
Where do I apply for mortgage consolidation?
There are literally hundreds of mortgage brokers in the UK. A good specialist broker will advise whether mortgage consolidation is the best solution for you. (link to mortgage broker page).
There are plenty of reputable specialist mortgage brokers online. Fill in our mortgage brokers form and our two mortgage broker partners will contact you to discuss your requirements.
It is always wise to take independent advice before making a big financial decision like this. You can find a suitable Independent Financial Adviser (IFA) here: