Debt Consolidation - Is It The Answer To The Mortgage Crisis?

According to the FSA, a million people over the next 18 months could lose their homes due to the credit crunch and huge mortgages. Many will turn to debt consolidation to control their finances.

The credit crunch will have a massive impact on many facets of our lifestyles but perhaps most notably on our homeownership. Experts are warning that the sizeable mortgages that many are on, combined with other debts, will spell disaster in terms of bankruptcy and financial strife. Banks are becoming increasingly wary and many who are coming to the end of their fixed rate mortgage will struggle to change to another affordable deal. As such, many will remortgage their homes whilst others will turn to debt consolidation to get a handle on their spiralling financial problems.

Debt Consolidation Or Remortgage – Which Is Right For You?

Debt consolidation is a good option for many in debt as it serves as a single loan taken out to pay off numerous outstanding loans. The benefits of debt consolidation include the fact that it can secure a lower interest rate as the debtor will now only be responsible for a single loan. Many experts argue that debt consolidation could be advisable for those with uncontrollable credit card debts as credit cards often carry very high interest rates and those debtors with property or a car can use it as collateral to secure a lower interest debt consolidation loan. Taking the remortgage option may also be viable for spiralling debts. Remortgaging will free up some of the equity tied up in your property and allow you to pay off debts in that manner.

Mortgages – What You Need To Know

The current credit crunch was inevitably bad news in the mortgages market and those who took out mortgages when property prices were soaring may well be the hardest hit. The buoyant housing market at the time led to these borrowers making a number of mistakes with their mortgages that may well affect them now. For example, they may have put down less than a 10% deposit or borrowed more than 3.5 times their annual salary. This causes massive problems when coming off their fixed rate mortgages. In many cases, debts will career out of control and many will turn to the benefits of a debt consolidation loan in order to ease their financial woes.

Speak To Homebank About Your Mortgage Needs

If you are thinking about debt consolidation, let the experts save you time and money by finding the right debt consolidation loan for you. Homebank have qualified mortgage consultants ready to advise you with all your debt consolidation, mortgage and insurance needs. For informative, insightful advice on debt consolidation, call us to arrange a no-obligation appointment to suit you. Homebank are the “people’s mortgage broker”, with thousands of products to choose from, including some that are not readily available on the High Street. Homebank’s experienced consultants could find the ideal debt consolidation product for you. Call Homebank free now on 0800 052 3604.