Debt Consolidation Loan

Debt Consolidation Loan

If you are looking for a loan to consolidate your existing debts, hmc.money can help you find the loan that is right for you and your circumstances. Consolidating your debt will allow you to manage your monthly outgoings more effectively. Please note that a debt consolidation loan will not be suitable for everyone. If you are in significant debt you should seek independent advice before entering into any further credit arrangements.

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What is a debt consolidation loan?

You may have multiple credit card debts or multiple outstanding loans which causes a headache each month when repayments are due. By taking out a debt consolidation loan you can reduce your monthly payments into one manageable and affordable payment. Depending on how much you wish to borrow, a debt consolidation loan can either be a secured loan against any residential property which you own (a second charge mortgage) or an unsecured loan.

Read more about what second charge mortgage is in our FAQs.

How does it work?

This type of loan makes a one-off payment into your account. You then make a fixed monthly repayment, with interest, for the lifetime of the loan to pay it back.

How much can I borrow?

The amount you can borrow depends on your circumstances and whether you opt for a secured or an unsecured loan. With a secured loan or second charge mortgage you can borrow between £5,000 and £2,500,000 over 3 to 35 years. If you choose to opt for an unsecured loan you can borrow between £1,000 and £30,000 over 1 to 5 years.

The amount of the term loan that you will be eligible to apply for and the interest rate that you will be offered will be dependent on the income, expenditure and security information that you provide us as part of your application and the results of the credit checks which we will carry out.

Representative example

Product: A variable rate second charge mortgage
Total amount of loan: £48,000 (including estimated broker fees of £3,100)
Term: 240 months (20 years)
Rate: 4.90%
Cost of credit: £27,391.20
Payment and frequency: 240 monthly payments of £314.13
Total amount repayable: £75,391.20
APRC: 5.9%

What you need to know?

THINK CAREFFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP YOUR REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

If you are thinking of consolidating existing borrowing you should be aware that you may be extending the term of the debt and increasing the total amount you repay.

A broker fee of up to 12.5% of the loan amount borrowed, may be payable on completion. Lender fees may also apply. The actual APRC rate available will depend on your individual circumstances. Loans and second charge mortgages are subject to status, please ask for a personalised illustration. Loans are secured on property.

We arrange loans and mortgages from a panel of lenders. We will receive a commission from the lender upon completion.

What do I do next?

Simply decide the type, amount and length of loan that you are looking for and complete the online application form. hmc.money will then explore offers and will help you along the application process.

Within 24 hours of submitting your application you will receive a call from our customer services team to discuss your requirement further. If your loan is approved we will forward to you your loan agreement and second charge mortgage document for you to review, sign and return. Please note that you should read the loan agreement (and any ancillary documentation) very carefully. You should only proceed to sign and return these documents if you are completely happy with the terms of your loan.

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