Debt consolidation
Thinking about bringing credit cards, personal loans or other debts together? Our friendly specialists help homeowners across the UK explore debt consolidation, with advice that starts with your circumstances rather than a product.
What is a debt consolidation mortgage?
A debt consolidation mortgage replaces several existing debts — such as credit cards, personal loans and car finance — with borrowing secured against your home. For most homeowners this means either remortgaging for a larger amount, or taking a second charge mortgage alongside your existing mortgage. You then repay one arrangement instead of several.
Consolidation does not write off what you owe. It changes how and over what period you repay it, and it makes your home security for debts that were previously unsecured.
See what consolidating could mean for your monthly payments.
Mortgage calculatorHow it works, step by step
- 1
Tell us your figures
Use the calculator to share your property value, mortgage, debts and monthly payments. Best guesses are fine to start.
- 2
Talk it through with an adviser
A qualified adviser reviews your income, spending, credit history and existing mortgage deal, including any early repayment charges.
- 3
Compare the routes
We look at a remortgage, a second charge, further borrowing from your current lender and unsecured alternatives, and show the total cost of each — not just the monthly payment.
- 4
Decide with no obligation
If a route suits you, we explain the fees, term and risks in writing. You choose whether to go ahead.
- 5
Application and completion
We help prepare and submit the application. The lender carries out its own checks and valuation; on completion, your agreed debts are repaid.
Remortgage or second charge?
A remortgage replaces your existing mortgage and may let you borrow more to repay debts — but if you are in a fixed deal, early repayment charges may apply. A second charge is a separate loan secured on your home, leaving your current mortgage and rate in place. We compare both, along with further borrowing from your current lender and unsecured options.
The honest pros and cons
Potential benefits
- One monthly payment can be easier to manage than several
- Mortgage rates are often lower than credit card or personal loan rates
- Monthly outgoings may reduce, freeing up room in your budget
- You may be able to raise extra funds at the same time
Things to weigh up
- Previously unsecured debts become secured against your home
- A longer term can mean paying more interest overall
- Fees and early repayment charges can outweigh the savings
- It does not write off debt, and running cards up again can leave you worse off
A lower monthly payment can mean a higher total cost. Always compare the interest rate, all fees, any early repayment charges, the term and the total amount repayable.
Who it may suit
- Homeowners with some equity in their property
- People paying several high-interest debts each month
- Those whose income comfortably covers the new payment
- People with past credit problems who are now back on track
If repayments are already becoming difficult, free independent help from MoneyHelper or StepChange Debt Charity may be more appropriate than new secured borrowing.
Check your figures in around 30 seconds — no obligation.
Mortgage calculatorWhat to have ready
Your latest mortgage statement, a list of debts with balances and monthly payments, recent payslips or accounts, and an idea of your property's value. Your equity, credit history and affordability all affect the options available, and no lender approval is guaranteed.
Why choose The Mortgage Exchange?
Specialist debt consolidation advice
This is the core of what we do, including for homeowners with missed payments, defaults or CCJs.
Every route compared
Remortgage, second charge, further advance and unsecured alternatives — we explain why one suits you over another.
Honest about costs
We show the total amount repayable and tell you if consolidating is not the right choice.
FCA regulated
Our advice is regulated by the Financial Conduct Authority, with a clear complaints process.
Questions about debt consolidation
What debts can I consolidate into a mortgage?
Lenders may consider credit cards, personal loans, car finance, store cards and overdrafts. Some debts, such as certain tax or business debts, may be treated differently. Whether a debt can be included depends on the lender and your circumstances.
Can I consolidate credit cards into my mortgage?
It may be possible, subject to lender criteria and affordability. However, moving unsecured credit-card debt into a mortgage makes your home security for that debt and may increase the total cost over a longer term.
Will debt consolidation save me money?
Not necessarily. A lower monthly payment may reflect a longer repayment term rather than a lower overall cost. Compare all fees and the total amount repayable against your existing arrangements.
How does consolidating debt affect my credit score?
Applying for new borrowing usually involves a credit search, and closing or repaying accounts changes your credit file. Over time, keeping up repayments on one arrangement may help, but missing payments on secured borrowing can seriously affect your credit record and put your home at risk.
Can I consolidate debts with an adverse credit history?
Adverse credit such as missed payments, defaults, CCJs or arrears affects which lenders and rates are open to you rather than ruling you out entirely. We can review your circumstances and discuss which specialist lenders may be worth considering, though an application or approval cannot be guaranteed and rates may be higher.
How long does debt consolidation take?
It depends on the route, the lender, the valuation and how quickly documents are provided. A second charge or a remortgage each has its own process; your adviser will explain the likely steps and timescales for your situation.
What if I fall behind on repayments after consolidating?
Because the borrowing is secured against your home, missed repayments can lead to arrears charges, damage to your credit file and, ultimately, repossession. Speak to your lender early if you are struggling, and consider free help from MoneyHelper or StepChange.
Should I stop using my credit cards after consolidating?
Building up new card balances after consolidating can leave you with more debt than before. Many people choose to close or reduce limits on cleared accounts, and we will talk through your spending as part of your advice.
Not sure which route fits? Read our guides: is it better to remortgage or get a loan? , releasing equity in your home, can I remortgage to pay off debt?, second charge mortgages explained and mortgages with bad credit.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Securing previously unsecured debts against your home puts your property at risk. A longer repayment term may increase the total amount you repay.
Mortgage availability and suitability depend on your individual circumstances. An initial consultation is no obligation; any applicable charges should be explained before you proceed.
Explore all our services
Debt consolidation
Friendly specialist debt consolidation mortgage advice across the UK. Compare remortgages, second charges, alternatives and total borrowing costs.
Explore debt consolidation 02Raising funds
Explore raising funds from your home with specialist advice across the UK. Compare remortgaging to release equity, second charges and further advances.
Explore raising funds 03Second charge mortgages
Explore borrowing against your home while keeping your existing first mortgage in place.
Explore second charge mortgages 04Remortgages
Review your current deal and explore mortgage options that suit your plans today.
Explore remortgages 05First-time buyers
Understand your deposit, budget and mortgage options before taking the first step towards your own home.
Explore first-time buyers 06Buy-to-let
Mortgage guidance for your first rental property or the next addition to your portfolio.
Explore buy-to-let 07Bridging loans
Friendly specialist bridging loan advice across the UK. Compare short-term secured borrowing for auction purchases, chain breaks and property projects, with costs and risks explained.
Explore bridging loans 08Protection and wills
Explore life cover, income protection and planning for the people who matter most.
Explore protection and willsYour next step starts here
Start your 30-second application for specialist help with consolidating debts, raising funds or your next mortgage — including if you have an adverse credit history. Prefer to look at the figures first? Try the mortgage calculator.