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.
Homeowner Secured Loans
Rates From 7.1% APRC
Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property.
First Choice are tied to certain loan providers.
Mortgages & Remortgages
Borrow £80,000 over 25 years
At 4.6% Variable, £461.95 for
300 months. Total Payable
£138,585. Total Cost Of
Credit £58,585 (incl £1360 fee).
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 MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on
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
First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.
Your loan to value (LTV) is an important aspect of what the lenders use to calculate how much you can borrow and the apr you will receive First Choice Finance have loan and mortgage plans for low and high LTV`s calculate your LTC with our free calculator tool.