Why do you pay less interest on secured debt?
The simple answer is lenders see secured debt as less of a risk and for two reasons;
People are far more likely to pay back what they owe on a mortgage each month even if they are struggling because keeping a roof over their head is always going to be a priority.
Secured debt also means the debt is secured on an asset which makes it easier to recover all or a significant proportion of the outstanding amount if the borrower defaults on repayments in the future.
How can we help you?
At Green Mortgages we have a team of experienced independent mortgage brokers who are able to help you find the best mortgages to fit your individual circumstances. We are whole of market mortgage brokers which means we can source the best mortgage products from over 140 different lenders. Even if you are self-employed, have adverse credit or you have been refused a mortgage before we can help. Simply give us a call or contact us via the website.
How can mortgage debt consolidation help me?
If you have debts spread across multiple credit cards as well as loans and other financial commitments, your financial situation can be constant source of stress and worry. With multiple payments being made every month and often high interest charged on credit cards, it can take many years to pay off debts or you may end up spending years just covering interest rather than paying off your balances.
This can cost you enormous amounts in interest payments without ever paying off a debt. Consolidating your debts on a mortgage will provide you with an end point so you can plan finances better and potentially even pay less each month.
You will also be able to streamline all your monthly repayments into a single mortgage payment and you will have the peace of mind that you are reducing the balance of what you owe each month and paying a lot less interest on your borrowing.
Some types of mortgages are not regulated by the FCA so please consider your options carefully before securing debts on your home. Your home may be repossessed if you do not keep up with your repayments.