Debt consolidation loans

The cost of taking out a debt consolidation loan will vary based on several factors, including the amount borrowed, the term of loan, and the provider. There is often a fee for these types of loan, so make sure you factor this into the overall cost when assessing your options. 

The answer to this depends on which type you choose:
With a secured loan through us, you could borrow between £10,000 and £500,000 over 3 to 30 years.
With an unsecured (personal loan) through us, you could borrow between £1,000 to £15,000 over 1 to 5 years.

At Ocean, there are two types of debt consolidation loan available:

Personal loans

These are unsecured, meaning you can apply to borrow without being a homeowner or providing collateral. Eligibility is considered based on your creditworthiness and ability to repay the loan.



Homeowner loans

These are secured against your property and therefore require you to be a homeowner. They allow you borrow larger sums of money and typically offer lower interest rates.

A hard credit check is only done when you submit your final application, not when checking your eligibility online.

You can check your eligibility for a loan with a soft credit check, which doesn’t impact your credit score and is only visible to you. This allows you to see offers you’re likely to be accepted for before even applying.

Yes, as with all types of lending, when you first take out a loan it’s likely to cause a temporary dip in your credit score. That's because a hard credit check will be recorded on your credit report when you apply, plus you'll be increasing your outstanding credit.

However, this impact’s only short-term, and if you stick to your loan repayments on time and in full, a debt consolidation loan could eventually serve to boost your credit score

Whilst there are some exclusions, e.g. mortgage payments and some car loans, the idea of a debt consolidation loan is to combine multiple debts into one monthly payment, typically over a longer term.

Alternatives will depend on the amount you’re consolidating. For larger debts, you could consider remortgaging, or a debt management plan.

If your debts are relatively small and you intend on paying them off soon, you may find a credit card is useful. Be mindful of their interest rates and any offer periods attached, as this may not be the best solution for longer-term borrowing.

This depends on the type of loan you apply for.

With a secured loan, it can take three to four weeks for you to receive your money. This is because the loan is secured against your home and requires additional time to process. The sooner you read and sign your agreement and share any required documentation with us, the quicker you’ll receive your loan.

With a personal loan, the money can be with you in a matter of days. In some cases, you may even receive the money the same day

No, you can get a debt consolidation loan without a guarantor.

However, a guarantor may improve your chances of being accepted if you can’t get approved on your own. A guarantor provides the lender with more reassurance that the loan will get repaid. In the event you are unable to keep up with your loan repayments, the guarantor would have to make them on your behalf.