Homeowner loans to manage credit debts

Homeowner loans to manage credit debts

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Video transcript

Homeowner loans could help consumers draw a line under any debts they`ve built up through mismanagement of their credit cards if they are unable to continue to meet their credit card or personal debt commitments.

This comes as Martin Wheatley, the head of the Financial Conduct Authority (FCA), suggests that credit card firms are accentuating some people`s problems. He queries `why are card issuers providing the means… for the most indebted consumers to escalate their way into further debt?`

Mr Wheatley`s comments come as the FCA announces further details into its inquiry into the credit card market, which is set to start at the end of the year. It`ll focus on how well operators are providing for customers, particularly vulnerable ones.

The credit card industry has responded by indicating that credit card debt has fallen, but FCA figures show that nine million of us consider ourselves to be in serious debt and with spending on plastic increasing, this number could grow.

If your repayments are on top of you, you could look into homeowner loans as a way of pulling yourself out of a debt spiral. These secured loans pay off your unsecured borrowing-like credit cards and store cards-and leave you with a single payment to make each month. However they are secured on your home and carry the same risks as a mortgage so explore all other options too. Maybe you can look into debt management or even an IVA. Also don`t forget family or close friends may be able to help.

While interest may be greater over time, due to the length of the loan, the repayments will be smaller as that is the primary reason that you would be looking at this route, so you`ll feel in more control of your money, as with many thinks it is about striking the right balance. If you wish to look at secured homeowner loans as an option please give us a call or enquire on line.
Discover more at firstchoicefinance.co.uk or call us on 0333 003 1505 or 0800 298 3000.
 

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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.

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