Debt Consolidation

It may make more sense to extend your mortgage to pay off other higher interest Loans, Purchase Agreements, Store Cards or Credit Card Balances. This, of course, would be your decision; Gem Mortgages cannot be held responsible for the decision taken by the borrower to extend an existing mortgage.

We can, however, provide free advice to help you decide whether this option would benefit you. Extending your mortgage to cover the amount outstanding on other debts may reduce your overall monthly costs by a significant amount allowing you extra capital to:

It is especially important that the borrower avoid the temptation of increasing debt load after extending a mortgage; it is possible to create a financial situation that may bring more pressure than before!

There is, of course, no such thing as a free lunch! Your overall mortgage will increase by the amount that you require to capitalise, although the payments are spread over a much longer period than a loan would normally allow, and the interest rates would usually be much more favourable. It is fair to say, on balance, that in a situation requiring consolidation, extending your mortgage may well be an option well worth exploring.

The mortgage calculator on this site will be an accurate guide to the type of monthly payments you could expect, simply type in the amount that you wish to extend the mortgage by, then key in a typical current mortgage rate. This will give you an idea of how much you extra you would expect to pay per month. If this figure is significantly lower than your typical monthly outgoings to other sources of debt, then debt consolidation may well be an option for you.

To allow us to assess this option for you, please fill in the contact form and we can scour the market for a deal that suits you, and, just so you know, we do not charge you for this service.