This can be used by people looking to reduce their monthly outgoings by consolidating debts and taking out a larger mortgage. How much you can borrow is determined by the value of your property and amount of your mortgage together with the usual underwriting requirements.
Although you can reduce your monthly outgoings and achieve a lower rate on the mortgage there are considerations:-
- As you are in effect spreading your debts over a longer time period you may well end up paying more interest in total.
- You need to understand the implications of ‘transferring’ non-secured debt (eg loans, credit cards) to secured debt (ie mortgage).
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.