Consolidating your debt into a mortgage loan

'Consolidating debt' means that you intend to add together a number of outstanding loans into a single loan, in this case a mortgage loan.

Mortgages can be the cheapest type of credit available due to the fact that mortgages are generally secured on your property. By consolidating debt into a mortgage, you will be in effect paying off these loans using a lower interest rate. However it is worth noting that you can end up paying more in the long run because mortgage loans typically lasts much longer than the original loans.

Some lenders can offer the facility to repay these portions of the new loan over a shorter time period than your original mortgage loan using the same interest rate as the mortgage loan. The important thing to consider before consolidating debt in this manner is that the new loan is secured on your property and should you fail to make payments, your home could be at risk.