When a borrower want to include current debts (e.g., credit card balances, car balances, etc.) being paid monthly in the refinance of their mortgage loan.

The loan proceeds can be paid directly to the bills indicated by the borrower and the borrower will have one payment (the mortgage payment) as opposed to paying the mortgage payment and various other payments.

Lenders make profit by lending money over a period of time and charging interest to the borrower for doing so. The larger the amount of money, and the longer the period of time, the more profit the lenders make.

Hence a large consolidation loan (say £15,000), paid off over a number of years (say five or ten) is an attractive proposition to a lender as they will be able to earn a significant amount of interest.

 

Student Loan Consolidation	Consolidation Loans