Debt Consolidation Loans

Make your life simpler with a homeowner debt consolidation loan

At Optimum Credit, we offer homeowner loans that could help you consolidate your debts, making them easier to manage each month. Find out how much you may be able to borrow by using our loan calculator below.

Borrowing of £40,000, plus £1095 lender fee, totalling £41,095, over 200 months on a variable product with an initial borrowing rate of 4.8%. There would be 200 monthly instalments of £298.90. Total amount payable £59,875, made up of: Mortgage Amount £40,000, Interest £18,685, Lender fee £1095, Exit Fee £95. Overall cost for comparison purposes 5.3%. Please be advised that any interest rate fluctuations, during the life of the mortgage contract, will affect the total amount repayable.

About us

Welcome to Optimum Credit

Optimum Credit is a leading provider of second charge mortgages for homeowners in England, Wales and Scotland. Optimum’s approach to meeting the needs of our customers has seen us advance funds totaling over £1bn since launching in June 2014.

Based in Cardiff and Uxbridge, we offer a range of variable, fixed and discounted second charge mortgages which can be applied for by speaking directly to one of our fully qualified mortgage advisors or approaching one of our carefully selected Broker Intermediaries (in both cases fees may apply).

How we can help you

Our aim is to provide you with a second charge mortgage that meets your individual and personal circumstances.

About us

Flexible, competitive and responsible

Second charge mortgages are a solution for many customers in a variety of situations and circumstances. As a responsible lender, Optimum Credit will only lend to customers who, as a result of the application process, we believe have the ability and intention to repay the second charge mortgage.

Optimum Credit could offer you a second charge mortgage of any amount from £5,000 to £1,000,000.

We can offer a repayment term of 3 to 30 years subject to your individual circumstances and credit checks.

Borrow up to 100% of your property’s value, less the existing mortgage balance subject to a satisfactory valuation. Minimum property values and conditions apply.

We offer competitive fixed, discounted and variable rate products. The actual rate we offer will depend on your individual and personal circumstances.

We offer flexible overpayment options, without penalty, which allow you to either reduce the term of your second charge mortgage, or reduce your monthly repayments, whichever suits your circumstances, firmly putting you in control.

You can expect a straightforward, customer friendly approach both during your application process and after completion of your second charge mortgage.

Our products

Second charge mortgages

Optimum Credit is a leading provider of second charge mortgages for homeowners in England, Wales and Scotland. Optimum’s approach to meeting the needs of our customers has seen us advance funds totaling over £1bn since launching in June 2014.

What is a second charge mortgage?

Second charge mortgages are often taken out to re-organise personal finances, and can allow customers to consolidate existing debt into easy to manage monthly payments. All applications are considered and assessed individually but you should be aware that when consolidating existing credit this may result in you extending the repayment term of your debt and could increase the total amount you repay.

How much could I borrow?

With a second charge mortgage from Optimum Credit, you can borrow up to £1,000,000 subject to your individual circumstances and credit checks. This often could be more than you could borrow with an unsecured personal loan – the main difference being that the borrowing is secured against the value of your home.

You can repay your second charge mortgage in full at any time, however early repayment charges may apply.  Full details are contained in your Mortgage Offer document sent prior to completion or in the ‘Early Repayment Section’ on the reverse of your Loan Agreement.

Please do not hesitate to contact us if you are uncertain about the early repayment charges on your second charge mortgage account.

If you have received mortgage advice directly from us, we are responsible for ensuring that the valuation is carried out and we will pay the cost of it.  In limited circumstances you may need to pay some, or all of this cost and we will notify you if this is the case.

If you have received mortgage advice from your personal mortgage adviser, the responsibility for ensuring the valuation is carried out, and for paying the cost of it, will fall to either your mortgage adviser or Optimum Credit.  No additional cost would normally arise as a result of a property valuation, but your mortgage adviser or Optimum Credit will notify you if you need to pay some, or all of this cost.  A portion of any fee that you pay your mortgage adviser may include an element towards the cost of a property valuation.

Our second charge mortgage

We offer competitive fixed, discounted and variable rate products. Optimum products are available by application either directly via our fully qualified mortgage advisors or through one of our carefully selected Broker intermediaries (in both cases fees may apply).

You may be able to borrow up to 100% of your property’s value, less the existing mortgage balance, subject to a satisfactory valuation and a minimum property value.

One of our qualified mortgage advisers will discuss your specific requirements with you before recommending a suitable mortgage from Optimum’s product range based upon your individual circumstances and needs.  

We offer a straightforward, customer friendly approach, both during your application  process and after completion of your second charge mortgage. We offer you the flexibility to make overpayments, at any time, without applying any form of financial penalty.

Our customers

Our Existing Customers

If you’re an existing Optimum Credit customer and would like to speak to us about your second charge mortgage, please get in touch if you would to talk about any of the following.

Help with repayments

If you’re having trouble making your repayment, or think that you may have problems in the near future, please contact us on 0333 014 3125.

Repaying your second charge mortgage

If you wish to repay your second charge mortgage early please contact our Customer Support team to request a redemption statement, which will include any early repayment charges that are applicable at that time.

Crest Nicholson

If you have any queries about your Crest Nicholson Shared Equity Mortgage you can contact us on 0333 014 3125.

Changing your direct debit

If you would like to discuss changing your direct debit date, please get in touch on 0333 014 3125.

Moving house

As your second charge mortgage from Optimum Credit is secured on your property, it’s important to let us know if you are thinking about moving home. For further information, please contact us.

HomeBuy Direct / FirstBuy

If you have any queries about your HomeBuy Direct of FirstBuy Shared Equity Mortgage you can contact Target Servicing Limited on 0345 848 0235. or target.hca@targetgroup.com.

Got a question?

To discuss a case, or find out more about our products and services, call our experienced team.

Who offers debt consolidation loans?

You can get a debt consolidation loan direct from a specialist lender such as Optimum Credit, a bank or a broker/intermediary.

Why get a debt consolidation loan?

By consolidating several debts, such as outstanding loans and credit cards, into one monthly payment you could:

  • Make it easier to budget for the month
  • Reduce the amount that you are paying on your debt each month
  • Pay off your debt over a set period
  • Find that your credit rating improves from making regular reduced monthly payments

But you should only look to take out a consolidation loan if you’re going to be saving money and plan on changing spending habits so that you don’t rack up more debts.

Secured or unsecured debt consolidation loan?

There are two types of debt consolidation loan, secured and unsecured.

Secured debt consolidation loans are typically more suitable if you owe a large amount of money. Because you secure the loan against your home you may be able to borrow more and at a lower rate than you can with an unsecured loan. You can often pay the loan back over a longer time period, which may mean lower monthly payments, but could mean you pay more over the duration of the loan. Be aware that your home is at risk if you default on a secured loan.

Unsecured or personal loans can prove a good option for consolidating smaller amounts of debt. One major plus is that you don’t have to use your home as security. But this does make it riskier for the lender so they can be harder to qualify for and you may end up paying a higher interest rate.

If you’re looking to clear credit card debt, it’s worth checking out whether you can get a good balance transfer deal from another credit card provider.

What should you consider if you plan on consolidating your debt?

  • Ensure you can afford the repayment plan for the length of the loan
  • Check the interest rate on offer and ensure it is less than what you were paying before
  • Check if there are fees for taking out the loan and factor this cost into your decision
  • Check if there are fees involved for paying off your current debts early

Why get a debt consolidation loan direct from the lender?

Depending on the amount you’re borrowing it could work out cheaper as there are no broker fees, although you may have to pay a lender fee.

Going direct to the lender can mean that the loan is quicker to pay out than if you go through a broker or intermediary.

With a secured loan you still get an advised sale from a fully qualified mortgage advisor, just like you would from a broker. They’ll check that:

  • You can afford the product over the proposed repayment term
  • The product is appropriate to your needs and objectives
  • It is the most suitable product from the range of products that the lender provides
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