Breez Residential Mortgages

DEBT CONSOLIDATION

A debt consolidation loan is the replacement of a number of smaller loans and debts, such as credit cards, personal loans, store cards. By using debt consolidation you only have to make one payment instead of making numerous payments.

With a debt consolidation loan you may end up with a lower monthly payment and a longer repayment period. This can help some people to manage their finances more effectively.

Debt consolidation loans require security by way of your home or investment property. The equity in your home can provide cheap working capital and is readily available.

Benefits of a Debt Consolidation Loan:

• Significant savings can be achieved
  
• Ease of payment – one loan – one payment
  
• Home loan rates are generally lower than those of personal loans, credit cards, car loans and overdrafts
  
• Reduce the amount of interest you pay to allow you to catch up and relax
  

EQUITY LOANS

A home equity loan is principally a mortgage on the borrower's principal residence, usually for the purpose of making home improvements or debt consolidation.

There are two types of home equity loans: the standard home equity loan and a home equity line of credit. In a standard home equity loan, a specified amount of money is loaned in a lump sum for a specified period of time.
 
Using your home equity is a sensible way to:

• Save for your retirement
  
• Never thought that you could afford to buy and investment property? Perhaps using the equity in your home is a sensible way of
• saving for your retirement.
  
• Pay the bills
  
• Perhaps you are struggling to meet your bills due to an unforeseen circumstance? Pressure can build up and cause many family breakdowns. Get the problem sorted out quickly before you get a bad credit rating.
  
• Buying a car
  
• Using the equity in your home to finance the purchase of your car may mean paying lower interest rates and lower monthly repayments.