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Remortgaging for Debt Consolidation : How It Works.

Expert guidance from Mortgage Advice Hut

If you’re juggling multiple debts, it can be tempting to roll them into your mortgage for one manageable monthly payment. While this can be a practical solution, it’s important to understand the risks and benefits before proceeding. At Mortgage Advice Hut, we’re here to help you make an informed decision.

What Is a Debt Consolidation Remortgage?
A debt consolidation remortgage involves switching to a new mortgage deal and increasing your borrowing to pay off existing debts—such as credit cards, loans, or overdrafts. It’s one of several reasons people choose to remortgage, alongside releasing equity or funding home improvements.

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If you’re juggling multiple debts, it can be tempting to roll them into your mortgage for one manageable monthly payment. While this can be a practical solution, it’s important to understand the risks and benefits before proceeding. At Mortgage Advice Hut, we’re here to help you make an informed decision.

What Is a Debt Consolidation Remortgage?
A debt consolidation remortgage involves switching to a new mortgage deal and increasing your borrowing to pay off existing debts—such as credit cards, loans, or overdrafts. It’s one of several reasons people choose to remortgage, alongside releasing equity or funding home improvements.

How Does A Debt Consolidation Mortgage Work?

To consolidate debts through remortgaging, you’ll need to have equity in your home—meaning your property is worth more than the remaining mortgage balance. You’ll apply for a new mortgage, often with a different lender, and borrow enough to cover your current mortgage plus the debts you want to repay.

The new mortgage pays off your existing deal, and the remaining funds are used to clear your other debts. Your monthly mortgage payments may increase slightly, unless you secure a lower interest rate.

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Who Can Remortgage for Debt Consolidation?

You may be eligible to remortgage if:

  • You have sufficient equity in your home.
  • Your Loan to Value (LTV) ratio remains within acceptable limits—typically up to 90%.
  • You meet the lender’s criteria, including affordability checks, credit history, and property type.

What Are the Risks?

While consolidating debt into your mortgage can simplify your finances, it’s not without drawbacks:

  • Higher long-term costs – Short-term debts could end up being repaid over 25+ years, increasing the total interest paid.
  • Secured borrowing – Your mortgage is secured against your home. If you fall behind on repayments, your property could be at risk.
  • Credit impact – If you’ve had financial difficulties, your credit score may affect your ability to borrow more. Applying without advice could worsen your credit position.

That’s why it’s essential to speak to a qualified mortgage broker before making any decisions.

How Mortgage Advice Hut Can Help

At Mortgage Advice Hut, we take the time to understand your financial situation and goals. We’ll:

  • Compare the cost of consolidating your debts through remortgaging vs. repaying them separately.
  • Include all fees and charges so you have a clear picture of the total cost.
  • Search the market for the most suitable and affordable remortgage deals.
  • Guide you through the application process from start to finish.

Ready to Explore Your Options?

Contact Mortgage Advice Hut today for a fee-free initial consultation and expert advice tailored to your needs. 

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

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Risk Warning This quote is for illustration purposes only and does not constitute a formal mortgage offer. The figures provided are based on current interest rates and available products at the time of this illustration and may vary depending on lender criteria, your personal circumstances, and market conditions at the time of application. Please be aware that all mortgage offers are subject to affordability assessments, credit checks, and a formal valuation of the property. Fees, terms, and conditions may apply. For a detailed, personalised offer, further discussions and a full application will be required. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.

Book a free, no-obligation mortgage appointment

Offering daytime, evening and weekend appointments at a time convenient for you. You can arrange your appointment with a qualified broker by using our online diary or calling us on 01772 846147.

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A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.

You may have to pay an early repayment charge to your existing lender if you remortgage.

Get a Quote.

Risk Warning This quote is for illustration purposes only and does not constitute a formal mortgage offer. The figures provided are based on current interest rates and available products at the time of this illustration and may vary depending on lender criteria, your personal circumstances, and market conditions at the time of application. Please be aware that all mortgage offers are subject to affordability assessments, credit checks, and a formal valuation of the property. Fees, terms, and conditions may apply. For a detailed, personalised offer, further discussions and a full application will be required. Your home may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage.