If you opt to consolidate your debts into your current account offset mortgage, you can be sure that you will be able to secure a cheaper mortgage in the future.

While many people think mortgage lenders decide their mortgage applications on the basis of income multiples – where the mortgage amount is decided by multiplying annual incomes – in fact the lenders decide on the basis of ‘affordability’.

This may sound vague, but it means they look at the entire history of a borrower and see how they handled debt in the past. If, for example, the borrower has experience of a high rate, large debt and paid it off properly, he or she will look like a good bet in the eyes of a lender. In turn, if a borrower has missed debt payments in the past or has a history of arrears then the mortgage lender may not think that borrower can handle a mortgage.

So consolidating your debt is a good idea. It limits what you have to pay out each month, and it shows a lender that you can sensibly handle debt. then in the future, when it comes to you applying for a new mortgage or a new credit card, you will find a lender may offer you a cheaper rate.

Talk to a mortgage adviser today about a debt consolidation mortgage where you can incorporate any credit card or loan debt into that deal. You will then pay less out each month in repayment charges, you only have one debt to worry about and you can be sure that lenders will like what they see in the future.

To stay abreast of current trends, news and comment on offseting mortgages visit the Offset Mortgage Blog.