Debt Consolidation Loans

  • ☰ HOME
  • ☊ APPLY ONLINE NOW
  • ? DEBT FAQs
  • ✍ OTHER SOLUTIONS
    • IVA Individual Voluntary Arrangements
    • Debt Relief Order DROs
    • Debt Arrangement Schemes
    • Scottish Trust Deeds
    • Bankruptcy
    • Business Debt Consolidation
  • ✔ ABOUT US
  • ☎ CONTACT US

Can I Consolidate Debt Into a Mortgage?



New homeowners will sometimes come find that current debt coupled with a new mortgage can be a bit overwhelming.

If possible, they would prefer to fold their current credit card debt into their mortgage.

This offers the benefit of having only one payment and a lower interest rate. However, while it is possible, some conditions must be met.

The first consideration is the loan to value ratio. Underwriters will have their own requirements for this. If the debt consolidation forces the ratio to become too high, the new homeowner will not be able to work the old debt into the mortgage.

For instance, if an underwriter requires a 95% ratio, and the home is valued at £300,000, the maximum value of the mortgage can be no more than £285,000.

Many lenders require at least a ten percent down payment on the home.

For the example listed above, if there was debt in excess of £15,000, it would not be possible to incorporate the debt consolidation into the mortgage (£300,000 base price less the £30,000 down payment, plus the £15,000 credit card debt maxes out the loan to value ratio).



Other considerations are how the debt will affect the loan payments and how much money would in fact be paid back over the course of the mortgage.

Since early payments are mostly interest, very little of the actual debt would be paid off in the early going.

Even with a lower interest rate on the mortgage, the homeowner may end up paying significantly more than if they were to just pay off the card on its own.

Folding debt into a mortgage can be complicated, but it is possible. However, turning it into favorable payments may not be so easy.

The debtor should seriously consider reworking their budget in an effort to free up more money to pay off the debt before considering taking on a bigger mortgage.

This will get the credit card debt out of the way quicker and enable them to have more equity in their home at the time of purchase.



Our Panel Of Lenders Include:

Free Debt Report Download

Download your full guide to the solutions available.

Download guide

Popular Content

  • Easy Ways To Save Money While Gardening
  • Best debt consolidation loans and how to find one
  • Debt consolidation calculator choosing a debt consolidation loans calculator
  • How Can I Get A Mortgage With Bad Credit History?
  • What Happens When I Marry Someone in Debt?
  • Clever Money-Saving Tips For Students
  • Money Saving Tips For Excellent Healthcare
  • How Will a Debt Relief Order Affect My Ability to Get Future Credit?
  • Substantial Savings With Regular Saver Accounts
  • Unsecured debt consolidation loans discussed
  • How Do You Know If You Are on the Bad Debt List?
  • What Counts As An Asset When Filing For A Debt Relief Order (DRO) In The UK?
  • Is It Safe to Use a Debt Management Company?
  • Top Tips For Saving Money On Heating, Cleaning, And Electricity
  • Purchasing A Home To Save Money
  • How Can I Stop Debt Collectors Contacting Me About My Ex?
  • Do Laundry The Money-Saving Way
  • Money Saving Secrets For Christmas Entertaining
  • Scottish Trust Deeds A Debt Solution For Scottish Residents
  • Would Voluntary Repossession of My Home Prevent Me from Getting a Debt Relief Order for Unsecured Debt?
  • I Am Moving from the UK, What Happens to My Debt?
  • Should I Get a Debt Consolidation Loan or Apply for a Lower Interest Credit Card and Transfer the Debt?
  • Top Ways To Cut Your Hair Care Costs
  • Save Money on Groceries
  • How Long Does It Take for Negatives to Fall Off My Credit Report?
  • Shocking Debt Statistics And Benefits Of Debt Consolidation Loans
  • Save By Taking Advantage Of These Freebies Ideas
  • Save Money And Energy While Baking and Cooking
  • Advantages And Disadvantages Of A Debt Arrangement Scheme
  • Will a Business Plan Help Me Get a Business Loan if I Have Bad Debt?
  • Procedural Changes for Disability Benefits May Increase Personal Debt
  • My Ex Owes Utility Companies at My Address, What Can I Do?
  • Overdrafts, Personal Loans, And Debt Management Plans
  • What Happens If My Spouse Dies In Debt?
  • Debt consolidation help for those considering a consolidation loan
  • Debt Consolidation Loans Bad Credit Borrowers Can Use
  • I Have Been Contacted About a 10-Year Old Debt, What Should I Do?
  • Will My Bad Credit Affect My Ability to Get a Job?
  • How Can I Get My Debt Back Under Control?
  • I Cannot Pay My Student Loan Debt, What Are My Options?
  • Entertainment On A Shoestring Budget
  • How Do I Clear My Name from My Partner’s Debt?
  • What Is the Minimum I Have to Pay to a Debt Collection Agency?
  • How Can I File a Complaint Against a Collection Agency for Harassment?
  • I Have Just Lost My Job And Have Massive Credit Card Debt, What Can I Do?
  • Self Employed IVAs Or Individual Voluntary Arrangements Discussed
  • Facts You Should Know about Debt Management Programs and Debt Consolidation
  • I Thought I Had a Good Credit Score, But I Was Still Turned Down for a Loan
  • Best Ways to Consolidate Bad Debt and Pay It Off?
  • Saving Money By Changing Habits
  • My Bankruptcy Was Approved, But I Am Still Being Hassled By Creditors
  • How Can I Check My Credit Report?
  • What Is an IVA?
  • How Will a Debt Consolidation Loan Help Me Get Out of Debt Quicker?
  • Saving For A Childs Education
  • What Happens To U.S. Medical Debt When I Live In UK?
  • What Are the Benefits of Filing for Bankruptcy?
  • Making Sure Your Debt Consolidation Service Keeps Your Information Confidential
  • Why Won’t My Credit Card Company Increase My Limit?
  • How Will My Partner’s Bad Credit Affect Our Ability for Joint Purchases?
  • Does the Government Offer Debt Consolidation Loans for Low Income Residents?
  • Resources for Dealing with Personal Finances
  • Debt Consolidation or Debt Management Service?
  • What Is a Debt Relief Order Or DRO
  • How Long Can a UK Court Claim Debt?
  • Inexpensive Decorating Ideas For Springtime Celebrations
  • How Does Debt Consolidation Help Someone With Existing Debt
  • Getting More Food On A Limited Budget
  • Types of Debt that Qualify for Debt Consolidation
  • Top Ways To Save Money Fast
  • Who Should I Get to Cosign a Debt Consolidation Loan?
  • What Type of Credit Cards Can I Get After Bankruptcy?
  • Saving Money On Pet Care- Simple Ideas That Make A Difference
  • Why Should I Document Contact With Debt Collection Agencies?
  • Who Is Responsible for Debt When a Spouse or Family Member Dies?
  • Do I Still Have to Repay a Bank Loan if I Have a Debt Relief Order?
  • Government debt consolidation loans and how they work
  • What Can I Do If a Debt Collection Agency is Hassling Me?
  • What Are the Best Low Interest Credit Cards for Someone with Bad Credit?
  • What Happens to Debt When Someone Dies?
| Terms & Conditions | Privacy Policy | Site Map | XML Site Map | For Homeowners With Bad Credit|

COPYRIGHT © 2011 – 2022 Money Marvel


This website is provided as an independent marketing website. We are neither a lender or an independent financial adviser and as such are unable to offer financial advice. Enquiries generated via this site are passed on to independent financial advisers and loans brokers. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Money Marvel, 4 Camino Condesa, Fuengirola, 29640, Spain
The server time is 03:30:32am