Debt consolidation

Using your mortgage to consolidate debts

If you own your home with a reasonable level of equity, a loan top-up to consolidate some personal debts may be a good option for you.

The process is simple, you just need to complete our online loan application so we can assess your options. 

The pros and cons of debt consolidation

On the plus side

1. One regular loan repayment could help you to become debt free faster.
   
2. Home loan interest rates are much cheaper than credit cards and other personal finance, so a debt consolidation loan could also give you some payment relief and improve your cash flow.
   

The downside

1. If it takes you the full term of your loan (say 30 years) to repay your loan, then you may pay quite a lot more in interest on the consolidated debts than you would have if you'd stuck to their original payment plans.  That said, this is a hypothetical outcome and most home loans are repaid before their 30 year term. 
   
2. Using your home loan (and therefore your home) to repay debts which are unsecured may put your home at unnecessary risk.  If you are struggling to repay your credit card or short term debts, it may not be a good idea to repay them using your home loan. 
   

Please note: This is not advice.  It is simply some general comments made for the purposes of explaining some of the considerations that relate to debt consolidation.  Specific advice based on your circumstances will be available if or when it is relevant. 

If you don't own your home

Unfortunately, we are not in a position to help customers that don't already own a home or other real estate.