Consolidating for finances
If you’re interested in consolidating, a personal pension, such as a self-invested personal pension (Sipp), can provide a huge amount of investment choice at a relatively low cost.
With interest rates fluctuating, you may wish to consider remortgaging with a variable rate tracker mortgage plan, or move onto a fixed rate mortgage for stability.
It’s worth bearing in mind that the new mortgage provider you switch to will need to value your property, so be prepared to research the local house prices and make a note of any home improvements you’ve made, just in case they come back to you with a lower than expected estimate.
While mortgages will offer far lower interest rates than credit cards and an improvement on personal loan rates, that doesn’t mean that remortgaging for debt consolidation will save you money.
If you’re lucky enough to be in a final salary scheme, it will almost always make sense to stay put.
But if you have any other type of pension – where success or failure depends on the performance of your investments - consolidation is worth considering.
As you’re more likely to be paying off your mortgage for a longer period than your other debts, you are also more likely to be paying much more.