Debt Consolidation Mortgages
Bring your mortgage and other short-term
debt together into one manageable loan.
Simplify Your Finances
Don’t Struggle With Multiple
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. It 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.
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.
Note of Caution: 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 help you put in place some financial strategies to help minimise this increase.
Lender Criteria
How much can I borrow?
The amount you can borrow is 3.5 times your annual income with deductions taken if you have other financial obligations like child support, dependent children, loans, credit card or if you have a partner who is not working.
Lenders will evaluate your eligibility based on criteria including:
- Employment
- Salary
- Repayment capacity
- Children
- Other loans you may have
Speak to one of our advisors who can determine how much you could borrow based on your unique circumstances.
Max Debt Consolidation
3.5 x annual income
Debt Consolidation Example
Steve
- Steve has a mortgage of 200,000 with an interest rate of 4%.
- He is repaying a home improvement loan of €30,000 at an interest rate of 8.2%.
- He also has a personal loan of €25,000 at an interest rate of 10.1%.
- Steve can potentially switch his mortgage and top it up by €55,000 in order to cover both his home renovation and personal loans.
- If Steve qualifies, he will now have a new mortgage valued at €255,000 which he will repay at a rate of 4% over the agreed term of the mortgage.
- Steve also has the option to overpay his mortgage thereby reducing the duration of the overall debt thus saving on interest.
| LOAN DETAILS | AMOUNT OWING | REMAINING TERM | TYPICAL APRC | MONTHLY PAYMENTS |
COST OF CREDIT
|
| Existing mortgage | €200,000 | 20 years | 4.00% | €1,212 | €90,871 |
| Home improvement loan | €30,000 | 7 years | 8.20% | €470 | €9,528 |
| Personal loan | €25,000 | 5 years | 10.10% | €532 | €6,944 |
| Total | €255,000 | €2,214 | €107,353 | ||
| New Debt Consolidation Mortgage | €255,000 | 20 years | 4.00% | €1,545 | €115,859 |
Monthly saving = €669
Potential extra cost of a Consolidated loan over 20 years = €8,516
Benefits
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.
Reduced interest.
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.
Lower Monthly Repayment
Mortgage Calculator
Get an indication of what your monthly repayments could be as well as how much you will pay in interest over the term of your loan.
Tip: Regularly review your mortgage with a qualified advisor and ask about how to reduce the amount of interest you pay in order to save thousands over your mortgage term.
Disclaimer: This calculator is for indicative purposes only. Please always seek professional guidance before making a financial decision.
Lower Monthly Repayments
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.
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