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What is a mortgage debt consolidation?
A debt consolidation mortgage gives you the liberty to refinance your existing mortgage and borrow extra money to pay off other small debts through home equity. The property is used as security. This popular method is usually used to pay off multiple and high-interest debts. The borrower pays only one instalment in place of various repayments, and that is also on a fixed rate. The terms and conditions of the deal change after remortgage according to the changed circumstances.
How does debt consolidation mortgage work?
Here is a glance at the generalized procedure to describe how to get a debt consolidation mortgage and what are the formalities.
Financial facets that lenders focus on knowing if the applicant is eligible or not
Obviously, your finances come under immediate notice to qualify for this mortgage product. These are –
- Calculation of the home equity on the current property and also its market value
- Detailed credit report obtained from credit reference agencies
- Total number of debts such as applicant may have a total of 5 different loans and credit card debts
- Type of interest rates in terms of interest rate such as high/low interest
- The value of the property and also the percentage of rising in value (if there is any rise)
- Current income status – monthly salary for employed & monthly earning for self-employed
- Recent financial behaviour in terms of debt and bill payments
- Income-outgoing ratio and a glance at spending habits
Shine Mortgages takes care of all the responsibilities for borrowers and its associated lenders.
When the lender is satisfied with the financial part applicant needs to prove affordability
Once the lender is convinced after scrutinizing your finances, it takes your application forward for the following process.
- Affordability check through debt consolidation mortgage calculator
- Asking for a repayment plan from the applicant to know how will he pay the debts
- The detailed study of the debt payment plan submitted by the applicant to check practicability
We help you explain the repayment schedule to the lender and also clear all the related doubts.
What happens once the lender is convinced with everything
This is the last stage where everything takes its final shape in the mortgage deal
- Approval decisions – the applicant gets approved after crossing all the above stages
- The lender offers a refinance deals with the amount and rate the applicant qualified for
- A bargain takes place between the lender and the borrower. This is where we appear again
- We get the deal finalized on an affordable rate and desired repayment plan for the borrower
- Once the borrower gets convinced the title insurance, title search and legal fees apply
- After all the above conditions the borrower gets the funds to pay off the debts
All the above process is not a headache for you because we take care of everything. The procedure is more or less the same in case of all the debt consolidation mortgage providers, and we are working with them since long. We know the factors that make them say ‘YES’ on your application. You need to provide us with the required documents and sit back to relax. Do not worry, we inform you through timely notifications. You get individual attention through our relationship managers.
NOTE – The debt consolidation affects getting mortgage approval because usually, you can borrow up to 65% of your home equity. If the debt is more than that, the acceptance of application can be difficult.
Which mortgage providers allow debt consolidation?
Debt consolidation mortgage is a specialized mortgage product, and not every lender offers it. There are selective names that facilitate this financial product.
Shine Mortgages has several lenders for mortgage refinance debt consolidation on its panel. They offer funds on reasonable rates and plausible repayment plans.
Usually, it is not easy for a mortgage seeker to find a reliable and suitable loan and lender because of less or incomplete knowledge about the mortgage market. But we ensure ease and find a workable mortgage option to help you integrate all your small debts.
Benefits of debt consolidation mortgage
You invite many benefits with debt consolidation when you have a mortgage which works as your tools to merge all obligations.
- Varied monthly instalments merged into one with the mortgage repayments
- Lower rates and small size payments that bring back financial balance
- It becomes easy to qualify for the other financial products like loan and credit cards
- No threat to credit score due to the fear of missed payments or default issue
- Get rid of the debts early by making part payment as there is one only instalment to pay
- Versatile nature as you can also get right to buy mortgage with debt consolidation on your council house
Why choose Shine Mortgages
Shine Mortgages always works for the financial well-being of the borrowers and work on every aspect that can make your access to the mortgage deals easy and uncomplicated.
- Broking services with uncompromised quality without any broker fee
- We have many lenders on the panel with affordable deals and flexible lending policies
- Advanced debt consolidation mortgage refinance calculator for rational decision-making
- We work on bank holidays to provide an unhampered delivery of financial peace
Types of loans you can consolidate through mortgage
The remortgage for debt consolidation encapsulates varied types of loans that are higher in the interest rate and add unnecessary burden to your finances.
- Auto loans
- Student loans
- Credit card loans
- Personal loans
- Payday loans
We always make sure that your experience of the second mortgage for debt consolidation purpose should remain smooth with us. Our dedicated team is still on its toes to bring the desired outcome of unifying sundry obligations into one manageable debt. You can know us better through an interaction. Call us or visit our website and let us know how we can help.
Council House Mortgage FAQs
Can you consolidate debt into a mortgage?
Yes, you can go through the debt consolidation mortgage products available in the market on cheap rates through your home equity. Shine Mortgages can ensure your access to those loan options and can help bring a positively drastic change in your current financial situation.
What is the smartest way to consolidate debt?
The smartest can be only one and ‘mortgage for debt consolidation’ is the best way for this purpose. It helps you get rid of multiple debts in a short time. However, a significant fact is that you can borrow up to 65% of home equity.
Is consolidating debt into mortgage a good idea?
Yes, it is always a good idea. After all, you can manage debts on a lower rate and through single instalment. You can attain back the lost balance of monthly budget without any compromise in the desires.
Can I remortgage to pay off debt?
Yes, you can. A remortgage is the prime way to pay off debts quickly through debt consolidation in your current mortgage deal. There are good deals available in the market that can solve this purpose efficiently. A broker can help you find the right option quickly.