Lines open at 8am

Can I Consolidate My Debt before Applying for a Mortgage?

Consolidating your debt before applying for a mortgage could be a great idea and might help you make that dream of owning property a reality. Below we explain how consolidation could assist you in securing that mortgage and what you can do to get the funds you seek.

Why should I consolidate my debts before applying for a mortgage?

When applying for a mortgage, the provider will check your credit report. There, the firm will see details of what other financial products you’re using, such as credit cards and personal loans. The report will also indicate whether you’ve missed any repayments or if someone has taken action against you. For example, in the form of a county court judgement.

Fundamentally, the mortgage provider wants to know you’ll be able to repay the loan they’re offering. As a result, if the credit report states you’ve struggled to repay companies before, that provider may be reluctant to approve the mortgage.

Alternatively, if you already owe a lot of debt, even if you’re managing to repay it, the mortgage provider might worry this loan could push you into financial difficultly.

Approving a product such as a mortgage is partly calculated on risk and ‘what ifs’. Bearing this in mind, eventually resolving your debts should paint a much more appealing picture to the lender.

After all, if you’ve paid off all your accounts – while successfully making payments on time to each creditor – this should demonstrate you’re far more responsible than someone drowning in debt.

How does a debt consolidation loan work?

A debt consolidation loan is a way to repay lenders on your terms. By requesting an amount equal to – or exceeding – the value of your debts, you can use the money to close these accounts and leave you making just one affordable payment each month.

To find out if you are eligible, get in touch with us today. It won’t cost you anything and we can help determine whether a debt consolidation loan is the best option for you. If you want to get on the property ladder, but are struggling with debt, we might even be able to recommend the ideal solution for getting your dream home faster.

To start making your dream a reality, click the button below. If your application is approved, you could have the funds you need within a few hours – and be closing accounts with your lenders within 24 hours.

Further Reading