Lower your payments

If you want a savvy and intelligent solution for debt consolidation then the National and Capital solution may be one for you.

Take a look at your credit cards, your loans, your store cards, overdrafts and other borrowing and study the rates of interest. You will see that most of them have an APR in excess of 12%, and more usually 16 or 17%.

Next, look at your mortgage. Even if you are on a standard variable rate of interest your APR will usually be 6% or less. That means the difference is around 10%. That makes you mortgage credit less than half the price of your consumer debt.

Why is this?

There are a few reasons. Firstly the way in which interest is calculated on credit card, HP, and store cards for example is different meaning that in some circumstances you pay interest on your interest, or that you do not benefit from reductions in the bank of England Base Rate. Secondly, consumer credit does is not usually secured on your property. That means if you do not pay, the lender has no way of getting their money back. Because of this risk, the lender has to charge higher interest rates to cover losses when borrowers default. Thirdly, mortgage lenders have your property as security. If you do not pay they can take the property and sell it to cover the mortgage. Because of this, mortgage lenders know you are more likely to pay your mortgage than any other credit. This means it’s less risky to lend mortgages than other credit. Because the risk is less, the interest rates are lower.

How do I access cheaper mortgage money for debt consolidation?

By speaking to us at National and Capital we can discuss your mortgage requirements. We have fixed rate mortgages, tracker mortgages, discount mortgages, and variable mortgages. For full details on the different types of remortgage see our easy remortgage page for details or call us today.

Won’t debt consolidation make short term debts the length of my mortgage end up costing me more in the long run?

Not many people know that you can have one mortgage, but made up of different pieces of money, these pieces are known as tranches. For example you could have main mortgage over 25 years, and the portion you need to consolidate your debts over 5 years. The rate would be the same on the whole mortgage, you would have one monthly payment, but a much shorter term on your debts at a low mortgage rate rather than at the high rates your credit providers charge you.

That would mean in many cases, much lower monthly payments, but without extending the term of your debt. You could prefer to make your bedts shorter or longer. You can decide based on what you can afford.

Call us now if you would like:

1. A fast, friendly and convenient service
2. Help paying off all your commitments – with cash spare if you wish!
3. suggestions and information on the best way to cut your costs.
4. A good deal, with a good rate of interest from a lender who will say yes!
5. You want a loan or remortgage

National & Capital’s experience and long standing lender relationships allow us to acquire exclusive mortgage deals with numerous lenders that simply cannot be found on the high street. Often we have market-leading fixed or tracker rates, or sometimes just the ability to secure a mortgage where others fail particularly for the self-employed, buy-to-let investors or clients with less than perfect credit histories.

We have access to all the big name lenders plus many you may not have heard of too including the likes of; Abbey, Beacon Homeloans, Blemain Finance, BM Solutions, Coventry Building Society, Cheltenham & Gloucester, Chelsea Building Society, Halifax, Natwest, Nationwide, RBS, TMW and many more.

Please feel free to look through our website and discover what we offer or call your personal adviser now to see how National & Capital can help you today.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. If you are thinking of consolidation existing borrowing you should be aware that you may be extending the term of the debt and increasing the amount that you pay.