Consolidating your debt into your mortgage Free mature naughty chat
When you take out an unsecured loan or credit card, you are not offering the lender anything as security.
If you don’t make your payments the lender can take you to court but can’t seize any asset.
In order to take out a debt consolidation mortgage you will generally need to have some equity in your property.
Figures from Credit Action show that individuals owed nearly as much as the entire country produced during the whole of 2011.This is because the lender takes a legal charge over your property, providing them with security for the loan.In addition, you will often find that your monthly repayment to the debt consolidation element of your mortgage will be significantly lower than the payments you were previously making to your other debts.You don’t have to be overwhelmed by mounting bills or rising monthly expenses.If you want to get out from under high interest rate charges from credit cards, student loans, or other forms of debt, then a cash-out refinance might be the solution for you.
While securing a previously unsecured debt may help you to reduce your payments, it also means that your home is then at risk if you don’t make your monthly payments.