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What is a Debt Consolidation Mortgage?

Why Would I Consolidate Debts Using a Mortgage?

How Can Friends Capital Help with a Debt Consolidation Mortgage?

Debt Consolidation Mortgage

A debt consolidation mortgage can allow you raise finance and pay off your current debts, and consolidate them into one payment. A debt consolidation mortgage could help you improve your credit score, reduce your monthly outgoings and help you secure a mortgage to purchase a property. 

Friends Capital have existing relationships with lenders of debt consolidation mortgages. We can help you find the best mortgage deal. We will review your personal circumstances and then search the entire market to ensure you get the best mortgage rates possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can: 

  • Save you money on your mortgage deal 
  • Offer a free consultation 
  • Offer unbiased financial advice 
  • Save you time in your mortgage application 
  • Give you a dedicated account manager who is available to you through the process 

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What is a Debt Consolidation Mortgage?

A debt consolidation mortgage is where you take out a single loan using the available equity in your property to help pay off debts such as loans and hire purchase agreements. 

By releasing some of the money you’ve already paid towards owning your home, you could reduce the amount of debt you owe overall, simplify your budget and take the pressure off your finances.

In order to qualify for a debt consolidation mortgage, a lender will assess the following:

  • Your credit report and what debts you have
  • The value of your property
  • What percentage of your home you own outright
  • How much you want to borrow compared to your income

Why Would I Consolidate Debts Using a Mortgage?

A debt consolidation mortgage could work out cheaper for you in monthly payments and make your finances easier to manage. Not only this, the interest on the mortgage will likely be cheaper than the interest on an unsecured loan. With a debt consolidation mortgage, you pay off the following:

  • Credit card debt
  • Personal loan
  • Payday loans
  • Overdrafts

As you are releasing equity from your property, you can raise as little or as much cash as you like (subject to status).

Theoretically, if you had £5,000 on one credit card with an interest rate of 24.5%, plus a loan of £10,000 at 11.5% APR plus another loan of £7,500 at 16.95% APR, your combined debts would come to £22,500. With interest over a 10-year period, your amount paid could reach £45,923 – that’s £23,423 worth of interest. With a 10-year debt consolidation remortgage with an interest rate of 5%, you could pay back a total of £28,638 instead. It may be that in some circumstances you would be taking the term of a debt consolidation loan over a longer period so it`s important to talk to your broker about this and consider the costs involved.   

How Can Friends Capital Help with a Debt Consolidation Mortgage?

Friends Capital have pre-existing relationships with lenders that welcome debt consolidation mortgage customers. We can search the entire market and get access to the best and most exclusive deals available with them. Then we will choose the deal that are most appropriate to your personal circumstance. We can:

  • Find you a lender that specialises in debt consolidation mortgages
  • Find you a deal appropriate to your personal circumstance
  • Offer unbiased financial advice
  • Give advice on what mortgage lenders will require, including giving you advice on an exit strategy for the mortgage end
  • Give you a no obligation mortgage quote
  • Deal with all the paper work, liaise with the lenders and solicitors. We will also make sure the application goes through as quickly as possible

Two Steps to Contacting Friends Capital 

Step 1 

Either call us, email us , book an appointment online or request a call back below.

Step 2 

One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation. 

When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available. 

If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’. 

If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf. 

We aim to get the lowest mortgage rates on the market

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