Can I get a debt consolidation loan that does not require pledging my house as security?

Most debt consolidation loans are secured loans - most of the adverts you see on TV and in the newspapers for debt consolidation loans, offering attractive interest rates - are secured loans. In other words they are a 2nd mortgage.

There is such a thing as an unsecured debt consolidation loan, but they are harder to find and you are likely to pay a higher interest rate if you are not a homeowner. You will also limit the amount you can borrow - usually up to £25,000.

The important thing to bear in mind is that you must make sure that you can deal with your repayments before you sign up for a debt consolidation loan.

Loans articles

More Loans FAQ's