call us free on
What is loan consolidation? Should I consider loan consolidation? How could loan consolidation make my monthly payments more manageable? Could loan consolidation make my life simpler? Can I use loan consolidation to reduce the interest rate I'm paying on my current loans? Will I be paying back more over the long term with loan consolidation? How can I use a FIRSTPLUS loan for loan consolidation? How do I apply for loan consolidation with FIRSTPLUS?
Loan consolidation means you use a consolidation loan to pay off your existing loans and credit. By transferring your debts to a consolidation loan you can often pay a lower rate of interest and, instead of having lots of bills to pay each month, you make one manageable payment.
Back to the top
Loan consolidation means you could swap a number of individual payments for one manageable monthly payment at a competitive rate of interest. It makes your finances simpler to manage and repayment more affordable.
If you have built up debts on loans, credit cards and store cards then you could consider loan consolidation as a way of making payments more manageable and easier to afford.
Debts on credit cards and store cards typically attract a high rate of interest, which means your monthly payments can mount up.
With loan consolidation you can pay off your individual creditors and secure your new loan at a more competitive rate of interest. That means you only have one manageable monthly payment.
However, you should be aware that although loan consolidation may be more convenient and affordable by spreading your repayments over a longer term, the overall amount of interest you pay will be greater.
Yes, especially if you currently owe money to lots of lenders and creditors, which can make it easy to accidentally miss making a payment.
With loan consolidation you only have to remember to make one monthly payment to your lender.
Loan consolidation is often secured lending. This means it typically uses an asset such as your house as security for your loan. Because this is less risky for the lender, interest rates for loan consolidation are usually lower than for unsecured lending - such as personal loans, car loans, credit cards or store cards.
As a result, some people choose loan consolidation so they can repay their debts at a much lower rate of interest - making monthly payments more convenient and affordable.
This really depends on two things:
If you need to borrow money over the longer term to make your repayments affordable, it could mean you pay more interest overall.
However, it is important to consider the benefits of loan consolidation in relation to the overall cost of the loan. For example, loan consolidation makes your financial arrangements much simpler because you only have one monthly repayment to think about. Also, by spreading the repayments over a longer term they can be more affordable.
Many people have used a FIRSTPLUS Homeowner Loan for loan consolidation. That's because it is a secured loan offering a competitive rate of interest - typical 8.5% APR variable.
You could be eligible to borrow up to the value of your home, less your current mortgage balance. Loans are granted between £5,000 and £100,000 - enough to pay off existing loans and credit - and you can choose to repay your loan over a period of 5 to 25 years. To use a FIRSTPLUS Homeowner Loan for loan consolidation you must be a homeowner with an existing mortgage.
There are two ways to apply for loan consolidation with a FIRSTPLUS Homeowner Loan:
Lines are open 8am-9pm Monday to Friday and 9am-5pm at weekends. If it's more convenient, we can call you back.
or call free
0800 052 0202*
8am-9am Mon-Fri, 9am-5pm weekends