There is no doubt that taking out a mortgage is an important and often life changing decision. It also true that you have to work hard for your mortgage. But did you know it’s also possible to make your mortgage work hard for you?
Introducing ObligoMultipart. A surprisingly easy way to make your mortgage work harder for you by taking full advantage of the low cost of mortgage money in managing your debts.
How does ObligoMultipart work?
Mortgage money is by far the most cost effective way to borrow of money. The rates charged by lenders for mortgages are in most cases very much cheaper than the interest rates charged on loans, HP, and credit cards for example. A typical mortgage rate is just 5%. A typical credit card is 17%. By cleverly using mortgage finance to replace credit finance you can save money and time in repaying your commitments.
By calculating your existing credit commitments accurately using the free tools in MyObligo you can easily calculate and compare your existing credit and debts against the cost of replacing them with mortgage finance at much lower rates.
Doesn’t debt consolidation mean taking my existing short terms debts over the length of my mortgage?
ObligoMultipart takes advantage of little known lending features that allows you to take your new mortgage in “tranches” or little pieces. That means you can take one mortgage in a two or three parts in differing amounts over different terms.
That means you can take your mortgage for your property over a longer term, and for your debts over a shorter term. But because in most cases the mortgage rate will be considerably less than your credit rates you save money.
You can of course choose to take your existing debts over a longer period if you wish. With ObligoMultipart the minimum term for your tranches or pieces of your mortgage is usually 5 years. An Obligo MortgageExpert can advise you of the lending policy of individual lenders.
Are there any downsides?
Think carefully before securing other debts against your home. If you get into problems with repaying your mortgage the lender can of course take action against you. However, also bear in mind that if you take a responsible and committed approach to using ObligoMultipart you could well repay your credit much quicker and more cheaply.
