Homeowner loans for when the heat is on

Video transcript

Homeowners may ultimately look to resort to loans for consumers who are seeing increased debt levels including to their utility companies, as new figures show that the energy crisis is growing.

Research by uSwitch shows that almost four million households owe a total £464 million to their power suppliers alone, with the average energy bill now sitting at £1,265 a year, almost £800 more than the level it was at in 2004.

Price hikes in the winter have seen the average home debt grow to £128 and it`s just fortunate that we had a mild winter, otherwise that could be far worse, indebted people may have tried to use less energy, which could have severe health implications, particularly for the elderly and infirm.

There are cheaper tariffs available, but Ann Robinson from the comparison site explains that `many see debt as a barrier to switching`, which can be a major disadvantage seeing as though the difference between the cheapest and most expensive deals can be around £300.

If you have multiple credit debts and are finding it harder to meet your everyday bills because of cash flow then if you are a homeowner with equity you could apply for a homeowner secured loan, which would provide you with a route to pay off unsecured bills using a new loan spread over a longer term to improve your cash flow. Please note you will likely pay more interest over the term and the loans are secured, so carry the same risks as a mortgage.

Our underwriters will identify the most suitable homeowner loan for you from our panel and provide you with a free quote, facts and figures, so you can decide if this will help you.

To get a homeowner secured loan quote without obligation or pressure, then visit firstchoicefinance.co.uk or call on 0333 003 1505, mobile friendly or 0800 298 3000, free from a BT landline.
 

Homeowner Loans For Debt Consolidation

We have helped people from all walks of life. Our dedicated UK loan team are there for you, whether you have good or bad credit. Our lenders offer competitive rates to help you consolidate credit and restructure your debts. Let our team start the search now and find you a quote for your debt consolidation loan. Fill out our debt consolidation loans UK application form (at the top of this page) for a quick quote. Once completed an adviser will contact you to discuss the different options and loan plans available.

Lower your monthly payments by consolidating credit card debts and other creditors with a debt consolidation loan or mortgage.

Mortgage Refinancing - Refinance your home loan by consolidating your credit loans and other debt. Or, potentially lower the mortgage rate on your home loan to today`s current mortgage interest rates. Less than perfect credit, burdensome amounts of debt, or a recent denial from acquiring a loan might reduce your availability for finance. However here at First Choice Finance we have lenders offering specialised loan plans for those of us with a less than perfect credit score. Debt consolidation could be a good fit for getting your finances under control, get in touch with First Choice for qualified help and advice.

What Is Debt Consolidation?

This is the practice of consolidating multiple bills, typically unsecured debts, but not always, and payments into a single payment, usually through some form of debt consolidation loan, home equity or mortgage refinance, or personal loan program.

Using Loans for Debt Consolidation

In the form of a loan consolidation, this generally results in a longer repayment term and thus a lower required monthly payment. Please Note: You will usually pay back more in interest over the term of the new loan. Offered interest rates for consolidation loans can vary based upon a number of factors, including your credit history. Also important is if the type of debt being changed by the consolidation. For example, unsecured debt (i.e. credit cards and most personal loans) being consolidated into secured debt, such as home equity would generally, but not always, result in a reduction in interest rate. When consolidations include a mortgage loan, they are frequently included in the refinancing of a first charge mortgage or the establishment of a second mortgage or home equity loan to allow a consumer, to take advantage of the available equity in their home. Even though you may not actually receive any of the loan proceeds, commonly referred to as a product switch loan, because you are paying off debt in addition to the principal balance of your existing mortgage.

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.