Debt consolidation mortgages
A debt consolidation mortgage is a mortgage that's big enough to pay off your original mortgage and your unsecured debts. By taking out this type of mortgage you could lower your monthly payments.
You'd owe more to your mortgage provider, but you'd wipe out your other debts, so you'd have just one repayment to make every month – your mortgage.
Is a debt consolidation mortgage right for me?
If you're struggling to keep track of your debts, a debt consolidation mortgage could be the answer.
Apart from making your monthly budgeting far easier to manage, a debt consolidation mortgage could seriously lower your monthly payments, since it will probably come with a much lower interest rate than unsecured debts such as credit cards, store cards, personal loans and overdrafts.
It's also possible to reduce your monthly payments by arranging to repay your new mortgage over a longer period - although this will increase the total cost, as the money will spend longer gathering interest.
The overall cost for comparison is 5.4% APR (typical).