What is remortgaging for debt consolidation?

Remortgaging your property allows you to replace your current mortgage product with new terms, which often changes the amount you pay each month. By remortgaging your property, you could free up a lump sum which can then be used to clear other debts, such as credit card repayments. 

For example, you might remortgage your property and free up a lump sum to pay off an outstanding credit card debt in full. By doing this, you could save months-worth of potential interest and credit card repayments at the expense of a slight monthly increase on your mortgage costs.

On other occasions, a debt consolidation remortgage can be used to reduce your overall monthly commitments. 

Whilst this may allow you to ease your financial circumstances, it may mean extending the term of the debts which could increase the overall costs of repayment. You must be aware that you would be securing previously unsecured debts against your property.

What are the benefits?

Remortgaging for debt consolidation could be beneficial to your finances overall:

• Consolidating your debts into smaller monthly payments can make them much easier to manage and potentially much more affordable.
• You may be able to agree on reduced payment terms with your lender if you already own a large portion of your property, lowering your monthly mortgage payments. 
• You may be able to switch lenders to obtain a better service or find more manageable terms.

Check your eligibility for a debt consolidation loan

• Reduce your monthly payments

• Homeowner loans available

• Getting a quote is FREE and won’t affect your credit score