As with all mortgages the first place to start is with a full review of the client’s personal and financial position.  Once the review has been completed we will make recommendations and advise our client on the potential options possible, particularly when advising on debt consolidation.

Most unsecured debt is lent on a short time basis, such as credit cards, personal loans, even car loans (although this may be secured on the vehicle). Whilst in most cases this is an affordable monthly cost for the client, in some situations, assuming the applicant is a homeowner, it may make financial sense to pool their finances into one overall debt.

Many applicants only consider the monthly cost impact. One consideration is of extending short term debt into a longer term arrangement via a mortgage. A balance has to be found between repaying the short term debt quickly and the affordability of the monthly payments.

If it’s appropriate, repaying over a longer time scale by refinancing, using a conventional mortgage. Or, a second charge could be a better option depending on the applicants’ circumstances, needs and requirements. We are often asked about this particular subject regarding a change of circumstances, either personal or employment driven. Each case is unique on application and underwritten on a case by case basis.

Please get in touch if you require a review to see if this would be a viable and appropriate option for you.

Please get in touch if you are in need of a review to see if this would be a viable and appropriate option for you.