Debt Consolidation Mortgage
Looking to bring your existing mortgage and other short term debt together into one manageable loan? We can help.
Simplify Your Finances
Don’t Struggle With Multiple Loan Repayments
A Debt Consolidation Mortgage can be a good option for property owners who are repaying multiple short-term loans as well as their existing mortgage. A Debt
Consolidation Mortgage works by bringing all your loans together under one single loan that is secured against your property.
A Debt Consolidation Mortgage offers a viable means of reducing the monthly payments you are making on any unsecured loans e.g. home improvement loans, personal loans, education loans etc.
Mortgages are amongst the cheapest form of credit available because the debt is secured against your property. For those struggling with multiple monthly high interest payments, a debt consolidation mortgage can reduce your monthly expenses and help you to budget more effectively.
It is important to remember that, because the term of a mortgage loan is much longer than other types of loans (e.g. a personal loan is typically 3-5 years), you could risk paying more over the lifetime of the mortgage.
We can find flexible lenders who, after consolidating your debt into one new mortgage loan, will allow you to pay extra off your mortgage thereby saving you money in the long run.
Benefits of a Debt Consolidation Mortgage
While it is important to discuss your individual situation with a mortgage consultant, a Debt Consolidation Mortgage offers a number of benefits:
Lower monthly payments.
Simplified and more manageable finances.
Faster loan clearance (with regular overpayment).
If you think that a Debt Consolidation Mortgage would help your financial planning and management, talk to us to find out more.
Rules For Borrowing
How much can I borrow?
The amount you can borrow is based on a number of criteria:
- Other loans you may have
- Repayment capacity
You should be in a permanent employment and not be on probation, however exceptions can be made e.g. for doctors who would be on contracts in different hospitals.
The amount you can borrow is 3.5 times your with deductions taken if you have other financial obligations like child support, dependant children, loans, credit card or if you have a partner who is not working.
- Joe has a mortgage of €200,000 with an interest rate of 4%.
- He is paying a home improvement loan that he took out 2 years ago for €30,000 at an interest rate of 10% and he has a personal loan of 25,000 with an interest rate of 8% which he used for his children’s education.
- Joe has the option to switch his mortgage from his existing lender and top it up by 55,000 to cover both his home improvement loan and his personal loan.
- Joe now has a new mortgage valued at €255,000 which he will pay off at a rate of 4% over the agreed term of the mortgage.
- Joe also has the option to overpay his mortgage thereby reducing the duration of the overall debt thus saving on interest.
Before you apply for a mortgage you should insure that your bank statements are in order. Sometimes you need to put a 6-month plan into place before you apply for the mortgage. This plan should include:
Good money management across all active current and savings accounts.
No missed direct debits or standing orders.
Controlled use of your credit card and ensure a monthly direct debit for minimum payment is set up.
Mortgage Do’s and Don’ts
Clear your credit card
Ensure that if you are paying rent that the rent is paid by direct debit from your bank account to the landlord
If you are living at home and paying parents rent you should also pay this into your parent’s bank account
If you are saving, make sure that the savings are put in on a regular basis. (i.e. weekly or monthly)
Miss any existing loan payments
Miss direct debit payments
Withdraw money from your savings account(s)
Withdraw cash using your credit card
Who We Work With
At EDUC Mortgages, we have access to all of the major lenders in Ireland so we can get you the best rate available on the market.
Start The Debt Consolidation Process
We understand the unique financial challenges and opportunities you face, and it is our purpose to be your trusted partner every step of the way.
So let’s get started!