Remortgaging to Consolidate Debt.
Sometimes it makes genuine financial sense to consolidate unsecured debts into your mortgage. Sometimes it doesn't. We'll tell you which applies to your situation — honestly.
Consolidating debts into a remortgage
Debt consolidation via remortgage involves raising additional capital when you remortgage — using the equity in your home to pay off unsecured debts such as credit cards, personal loans, and car finance.
The appeal is straightforward: mortgage rates are typically much lower than unsecured debt rates, and replacing multiple monthly payments with one can simplify your finances and reduce your monthly outgoings.
When consolidation isn't the answer
We have a duty to be straight with you here. Consolidating unsecured debt into your mortgage converts it to secured debt — your home is now at risk if you can't keep up with those payments. And because mortgages run over long terms, you may pay significantly more total interest even at a lower rate.
Debt consolidation done without addressing the spending patterns that created the debt often leads to the unsecured balances rebuilding — leaving you worse off overall. We won't recommend this route unless the numbers genuinely work in your favour and your circumstances support it.
Get an honest assessmentWhen it genuinely makes sense
Debt consolidation via remortgage tends to make sense when:
We run these calculations for you before making any recommendation. If the numbers don't stack up, we'll tell you.
Real case — anonymised
A homeowner with £28,000 across three credit cards at 22–29% APR was paying over £700/month in minimum payments. By raising capital via remortgage at a far lower rate, her monthly outgoings dropped by over £400 and she cleared the cards. She committed to not rebuilding the balances — and hasn't. Not every case works this way, but hers did.
— Debt consolidation remortgage, North Yorkshire
Debt consolidation FAQs
Yes — most lenders will consider remortgaging for debt consolidation purposes, subject to affordability and LTV. They'll assess the total new mortgage amount against your income and will want to see that clearing the debts improves your overall financial position. Some lenders are more comfortable with this than others; we know which ones and what they need.
In the short term, a new mortgage application will create a hard credit search. Over the medium term, clearing high utilisation credit cards typically improves your credit score — particularly if the accounts are then closed or kept at zero. The remortgage itself will show as a new credit account.
Adverse credit doesn't automatically rule it out, but it narrows the lender options and typically means higher rates. If your credit issues are directly related to the debts you're looking to consolidate, some lenders will take a sympathetic view. We'll assess your full credit picture before recommending an approach.
Yes. A 0% balance transfer card, a personal consolidation loan, or a structured repayment plan may be more appropriate depending on the amounts involved and your circumstances. We're not debt advisers, but we will flag if we think another route might be better for you and signpost accordingly. Our job is to give you good advice, not to place a mortgage.
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Important: Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Consolidating unsecured debts into a mortgage means those debts become secured against your home. Think carefully before securing other debts against your home. There may be a fee for mortgage advice ranging from £100 to £750.