Consolidation Loan - Seek Financial Advice

Debt consolidation loans have never been so popular. Why are they so popular? Consolidation loans allows people struggling with crippling debt to take out a single loan to consolidate a number of existing debts and make just one simple, easy monthly payment.

How does a consolidation loan work?

Often a consolidation loan consists of taking out a second mortgage - around 60% of second mortgages are estimated to be for consolidating debts. As this kind of consolidation loan uses your home as security, it's important that borrowers understand that their homes could be at risk if they don't keep up their monthly repayments. Taking out a consolidation loan gives you the option of lower monthly payments, helping you get back in financial track. Consolidation loans however will usually be spread over a longer term, so that you will in the long run be paying more interest. This is the price of fixing your day to day debt problems.

Consolidation loan market grows

The second mortgage sector or loan consolidation market has grown much faster than the rest of the consumer credit market according to recent research, highlighting the need for debt solutions.It's a scary thought, but debt is well and truly a part of the UK culture, which is why the consolidation loan market has boomed.

Consolidation loan - The future

Although there are risks when it comes to taking out a consolidation loan - your home is usually used as security - the consolidation loan market continues to increase. Taking out a consolidation loan is a solution for many people struggling with debt.

Help and Advice

Many companies advertise a consolidation loan as being a promise to a worry free future for people heavy in debt - in many cases, a consolidation loan can do just that. However, it's important that you make sure a consolidation loan is the right solution for your individual financial circumstances. Always seek professional help and advice before you take out a consolidation loan.

Homebank's mortgage advisors are experienced in helping people finding the right mortgage or consolidation loan to consolidate their debt and are always available to provide debt consolidation advice or to give debt management tips. They may help you reduce your debt to affordable single monthly repayments giving you the chance to get out of debt quicker by reducing your monthly outgoings. Call Homebank now on free phone 0800 052 3604 and see how they can help you.

The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

Homebank Financial Services Limited is an appointed representative of The Willow Tree Management Company UK Ltd which is authorised and regulated by the Financial Services Authority.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured on it.
For mortgage related services the fee will typically be 1.79% of the mortgage advance applied for, minimum fee of �750. In addition, there may be a valuation administration fee of up to 0.7% of the loan amount. For example if you take out a loan of £50,000 you will need to pay a total of up to £1,245; comprising of the broker fee of £895 and the valuation administration fee of up to £350. This in addition to any commission we may recieve from the lender. Broker fees may be added to the mortgage.

Not all Buy To Let mortgages are regulated by the Financial Services Authority
Adverse Credit - The overall rate for comparison is 9.2% APR. The actual rate available will depend upon your circumstances. Ask for a Key Facts Illustration
Right To Buy Mortgages - The overall rate for comparison is 8.9% APR. The actual rate available will depend upon your circumstances. Ask for a Key Facts Illustration

CURRENCY MORTGAGES - CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING VALUE OF YOUR DEBT.
Homebank Financial Services Limited is entered on the FSA register under reference number 464724, as an appointed representative of The Willow Tree Management Company UK Ltd, who are also registered under the FSA register under reference number 310569.