Mortgage & Loans
Consolidation Loans
A consolidation loan is normally taken out to pay off existing debts i.e. (credit cards, existing smaller loans, personal debts, catalogues, etc), and normally offer a lower payment per month, but over a longer term – making it more affordable now. These types of loans are as follows;
Remortgage
Where you own property and you have sufficient equity (the difference between the value of your home and your current mortgage) you may be able to raise this necessary capital and pay off your existing debts. Mortgage rates are normally cheaper than other types of borrowing making your repayment more affordable but you will normally have to pay this new mortgage payment for an extended term to accommodate your debt repayment.
We can advise you where to find this type of regulated advice.
Secured Loans
Similar to remortgaging you can again raise equity against your property and pay off your debts by way of a secured consolidation loan. Secured loans can be useful if you have existing penalties to overcome at present on your existing mortgage and where due to your current financial circumstances a High Street Lender may not offer a remortgage.
Secured loans subject to status can be more expensive than a high street mortgage lender, but may still offer an affordable consolidation payment albeit over a longer term to stop you having to enter into debt arrangement and potentially further affect your credit rating.
We can advise as part of our assistance if this may be an alternative solution.
High Street Loans
Normally cheaper than Secured Loans, but cannot be for sums of more than £25,000 and having maximum terms of around 8 years. – making the short terms for consolidation more expensive on a monthly basis. For your loan to be accepted your credit rating normally needs to be excellent.
| Advantages | |
| • | Most Consolidation loans have lower interest rates than Credit Cards providers and Bank Overdrafts charges. |
| • | Monthly repayments are normally lower. |
| • | Some mortgages offer payment holidays and overpayment options to reduce the payment term. |
| Disadvantages | |
| • | There may be new fees to pay the new lender. |
| • | New lending may be difficult especially in the current financial climate. |
| • | You could be securing previously unsecured debts on your property. |
| • | You may be increasing your repayment term. |
We offer remortgage, consolodation loans, secured loans and high street loan solutions throughout the whole of Scotland covering all areas of Glasgow through to Hamilton, Motherwell, Coatbridge, Irvine and Ayrshire. We are also available in Aberdeen, Dundee, Falkirk and Stirling. First Debt Advice Scotland have meeting sites throughout Scotland, or can arrange a home visit.
Just pick up the phone Text you Name to 07786 522 831 call our helpline on
0141 447 0290 or fill in our Enquiry Form and make the first step towards freeing yourself from debt.
 |
 |
| Company Registration Number SC367292 Credit consumer Licence Number 0635621 Monday to Thursday: 9.30am - 8pm | Friday:9.30am -5pm |
