Remortgage to Consolidate Debt | A Complete UK Guide for 2025

Illustration of a man struggling with credit card debt, symbolising the burden that can be eased with a remortgage to consolidate debt.

Struggling with Multiple Debts? A Remortgage Could Be the Smart Way Out

If you’re juggling multiple credit cards, personal loans, or car finance, a remortgage to consolidate debt could offer a smarter, more affordable solution. By moving all your outstanding balances into one mortgage, you can simplify your finances and potentially reduce your monthly repayments.

In this guide, we explain exactly how remortgaging to consolidate debt works, its pros and cons, and whether it’s the right choice for you.

Illustration of a house under threat from a falling debt bomb, symbolising the financial pressure before using a debt consolidation remortgage solution.

Benefits of a Remortgage to Consolidate Debt

Lower Monthly Repayments

Mortgage rates are often lower than credit cards or loans. This could help you save money monthly.

One Simple Payment

Forget tracking multiple due dates – one payment covers everything.

Reduced Financial Stress

Combining debts can ease anxiety and provide clarity around your finances.

Improve Cash Flow

A lower monthly outgo can leave more money in your pocket for daily essentials or savings.

What Does Remortgage to Consolidate Debt Mean?

Remortgaging to consolidate debt means switching your current mortgage to a new deal — and borrowing additional money to pay off other debts.

These could include:

Credit cards
Overdrafts
Personal loans
Car finance
Store cards

The new mortgage will combine your existing home loan and your other outstanding debts into a single monthly repayment.

Example of Debt Consolidation with a Remortgage

Home value: £300,000
Current mortgage: £150,000
Unsecured debts: £25,000
Remortgage total: £175,000
New LTV: ~58%
Result: One monthly payment at a typically lower mortgage interest rate.

Key Considerations Before You Consolidate

You’re Securing Unsecured Debt

Turning unsecured debt into secured debt (against your home) increases risk. Miss payments and your home could be at risk.

Long-Term Costs

Although your monthly payments might drop, spreading debt over 20-30 years could increase overall interest paid.

Early Repayment Charges

Check whether your current mortgage has exit fees – they could impact whether switching is worthwhile.

See If Consolidation Is Right for You

Common Uses for a Debt Consolidation Remortgage

Paying off credit card balances
Clearing high-interest personal loans
Ending overdraft reliance
Replacing multiple payments with one
Improving credit score through lower utilisation

Tools to Help You Decide

Mortgage Repayment Calculator

Find out what your monthly repayments could look like.

Calculate My Monthly Repayments

Debt Consolidation Buy To Let Affordability Checker

See how much you could borrow based on your current income.

Check My Borrowing Power

Best Mortgage Lenders UK

Compare consolidation-friendly lenders in one place.

Compare Top Lenders Now

Illustration of a happy woman jumping with a "Debt Free" sign and stacked coins, symbolising financial freedom through a remortgage for debt consolidation.

Who Can Apply for a Debt Consolidation Remortgage?

You may be eligible if you:

Are a homeowner with equity in your property
Have a good or fair credit score (bad credit may still be considered)
Have regular income or are self-employed
Are looking to borrow less than 85% of your property value

FAQs: Remortgaging to Consolidate Debt

Yes, but your new mortgage deal may include early repayment fees or porting restrictions.

Yes, some lenders will consider applicants with missed payments or defaults. See mortgages with bad credit for external guidance.

Yes – initially. A hard check will be recorded, but over time, consolidating and paying consistently can improve your score.

Usually, yes. Most lenders will only allow you to borrow up to 85% of your home’s current value.

External Resource

For impartial advice on remortgaging with debt, visit:

🔗 StepChange: Mortgage with Bad Credit

Go Back to:

🔙 Remortgage for Better Rates

Speak to an Expert

Our experienced mortgage brokers at Verifi Mortgages can assess your full situation and recommend the best debt consolidation option from over 90 UK lenders.

📞 Call us now at 0204 579 1647 or Book a Free Consultation

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