If you have existing debts, it may be possible for you to add these to your mortgage rather than continue with your existing repayment arrangements. This is not suitable for everyone and you'll need to carefully consider this with your adviser. When you add loans to your mortgage, it is important that you understand the risks:
- Adding short-term loans to your mortgage means you will repay them over a longer term. This is because unsecured loans are generally paid back over a shorter term than mortgage loans. So, while the interest rate on your mortgage you're likely to pay more overall. Therefore, it may not be appropriate to consolidate small or short-term debts.
- Your existing debts might not be secured on your property. By adding them to your mortgage they become secured on your property.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. If you're having difficulty paying your loans, it's worth speaking to your creditors to see if you can negotiate better terms before considering adding them to your mortgage.
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Your home may be repossessed if you do not keep up repayments on your mortgage
Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.