Debt Consolidation Loans - Homeowners

Secured Debt Consolidation Loans for homeowners in Scotland is an option open to manage unaffordable debts. Whether it’s a second mortgage, or a remortgage.

How do Debt Consolidation Loans work?

A Debt Consolidation Loan can be arranged in a number of ways.

Firstly, an unsecured personal loan direct from your bank or other lender.

Secondly, by remortgaging your property to release enough equity to pay off your outstanding debts this way.

Lastly, by securing a second charge mortgage against your property.

The first option of an unsecured loan is very unlikely where you have bad/poor credit and already defaulted on existing debts. There may be advantages to remortgaging over a second charge mortgage but generally, a second charge mortgage will allow a lower interest rate.

In all debt consolidation loan cases, where you do have debts that have escalated to incur additional charges and fees, you should consider requesting full and final settlement amounts from your creditors in writing.

Who Qualifies For Homeowner Debt Consolidation Loans

✔️ You live in the UK.

✔️ You are a homeowner.

✔️ Mortgage Arrears – lending criteria varies from lender to lender.

✔️ Income may need to be evidenced, regular and sustainable.

✔️ Active Trust Deed – lending criteria varies from lender to lender.

✔️ Age – lending criteria varies from lender to lender.

Secured Loan Advantages

✅ Homeowner debt consolidation loans from £10,000-£500,000

✅ lower interest rates from 3.65%.

✅ Can improve your credit rating.

✅ Any credit rating history considered or CCJs.

✅ Retired, or self-employed considered.

Secured Loan Disadvantages

❌  Your home may be repossessed if you do not keep up repayment of your debt consolidation loan’s second mortgage or remortgage.

❌  There may be simpler solutions that do not require further borrowing.

❌  Debt Consolidation Loans put the onus on you to pay off your debts. You are entitled to spend your funds on any purpose. And, if you do invest in additional expenditure like home improvements – are you creating a much bigger problem longer term?

Find Out More

Contact an expert money advisor at DAS Scotland to find out more about homeowner debt consolidation loans and all the other debt solutions available to you.

We are here to help you make an informed decision based on your affordability and support you every step of the way. If you would like a fresh start, get in touch today.

📞 0141 380 0588

🕕 You can also try using our Debt Repayment Calculator tool