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YOU ARE HERE: Home > Debt Consolidation Loans > Reduce Your Monthly Payments . . . and Cut the Cost of Borrowing

Debt Consolidation Loans

Reduce Your Monthly Payments

Secured Loans

Unsecured Loans

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Reduce Your Monthly Payments . . . and Cut the Cost of Borrowing

Consolidation loans are meant to do two things:

    1. Reduce the size of your monthly payments

    2. Reduce the actual cost of borrowing

Of course, in addition to bundling all your existing credit commitments into one new loan, you might want to free up some extra money to pay for a new conservatory, buy that new car or take that holiday you've been promising yourself for the last three years.

On the other hand, it might actually be as simple as slashing the cost of your current repayments to ensure that you are free and clear of your debts as quickly as possible. The important thing is to ensure that you get a good deal.

Depending on whether you are a homeowner or tenant, consolidation loans come in two forms:

  • Secured Loans

    • For homeowners, these loans are secured on your home as a second mortgage. But because of the greater security for the lender, larger sums can be borrowed and over a longer period. Features typically include:

    • Maximum 110% Loan-To-Value (LTV) where there are a small number of defaults or arrears

    • Maximum 125% LTV where there are no defaults or CCJs

    • Loans can typically be taken for up to 25 years

    • NO UPFRONT COSTS

    • Secured Loans from £5,000 to £250,000

    • Payment Protection Insurance is optional

 

  • Unsecured Loans

    • For tenants, an unsecured (or personal) loan is the alternative.

    • Most lenders advertise status loans up to £15,000 to £25,000.

    • Majority of loans available up to 5 years, some loans available up to 10 years.

    • Payment Protection Insurance is optional

    • Loans for those with bad or impaired credit are usually available in the £500 to £15,000 range.

 

What You Should do Next?

  • If you are a Homeowner

  • If you are a Tenant

      If you have a relatively good credit history, take a look at the unsecured loans provided detailed. Then decide which loan/lender best suits your needs.

      If there are a number of blemishes on your credit file, or you have already tried to obtain an unsecured loan but have been unsuccessful, then a status lender may not be for you.

      If you are looking for an unsecured loan despite an impaired or chequered credit history, then a Bad Credit Lender will be more likely able to help.

         

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS
ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

 

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