Can I remortgage to pay off debt?
Many homeowners ask whether they can remortgage to clear credit cards, loans or car finance. Often you can, but it is not right for everyone. Our friendly specialists help you compare the real costs and risks before you decide.
How remortgaging to pay off debt works
You replace your current mortgage with a new, larger one and use the extra money to repay other debts. Instead of several monthly payments, you have one mortgage payment. This is often called a debt consolidation mortgage or debt consolidation remortgage.
Can I remortgage to pay off debt?
Often yes, if you have enough equity in your home and can afford the new mortgage. Lenders look at your property value, your existing mortgage, your income, your outgoings and your credit history. Not every lender accepts debt consolidation, and approval is never guaranteed.
Is debt consolidation a good idea?
It can lower your monthly outgoings and make your money easier to manage. But spreading short-term debts over a long mortgage term can mean paying much more interest in total, and your home is at risk if you do not keep up repayments. It works best alongside a plan to avoid building up new debts.
Costs to check first
Look at any early repayment charge on your current mortgage, product, valuation and legal fees, and the total amount repayable over the new term, not only the monthly saving. Our quote calculator gives you an idea of possible monthly savings, and an adviser confirms the full costs with you.
Other ways to consolidate debt
If leaving your current deal would be expensive, a further advance from your existing lender or a second charge mortgage may let you consolidate while keeping your mortgage in place. An unsecured debt consolidation loan does not put your home at risk, though rates are often higher.
Consolidating debt with bad credit
Missed payments, defaults or CCJs do not always rule you out. Specialist lenders may consider your circumstances, although rates may be higher. We are honest about what is realistic.
How we can help
We review your mortgage, debts, income and outgoings, compare suitable options and explain the savings, fees, risks and total cost before you decide. An initial consultation is no obligation, and no lender approval is guaranteed.
Common questions
How much can I remortgage to pay off debt?
It depends on your property value, mortgage balance, the lender’s loan-to-value limits and what you can afford. Our calculator gives a starting point and an adviser confirms what is realistic.
Will remortgaging to pay off debt affect my credit score?
Applying involves a credit search, and new borrowing appears on your credit file. Repaying other debts and keeping up your mortgage payments can help your record over time.
Should I remortgage or get a debt consolidation loan?
It depends on the amount, your current mortgage deal and your circumstances. Read our guide to remortgaging or taking a loan, and compare the total amount repayable for each option.
What if I am struggling with my debts?
If repayments are becoming difficult, free independent help from MoneyHelper or StepChange may be more suitable than new borrowing. Consider those options before securing debt against your home.
Free independent debt support: MoneyHelper or StepChange Debt Charity.
Your home 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. 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.
Related guides: remortgaging to pay off debt, second charge mortgages, remortgage or loan? and releasing equity.
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