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Debt Consolidation Remortgages

Remortgaging your property can be a way to consolidate debts and ease financial burdens. However, there is plenty to consider before applying.

It’s possible to consolidate your debts into one repayment plan by raising funds through remortgaging your property. By releasing some of the money you’ve paid towards owning your home, you can free up extra finance to pay off other debts. Though this can make your debts more manageable, it’s worth bearing in mind that your monthly mortgage repayments could increase, and you should be sure you could afford the new terms before you apply. Find out more below.
  • Remortgaging your property raises money to help cover the cost of other debts.

  • Consolidating your debts into one repayment plan can make them easier to manage.

  • Your monthly mortgage payments could increase depending on how much money you get by remortgaging your property.

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What is remortgaging for debt consolidation?

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

For example, if you were to remortgage your property and free up a lump sum of £5,000 to pay off an outstanding credit card debt in full, you could save months 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 be a way of easing 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.

Benefits of remortgaging for debt consolidation

Remortgaging for debt consolidation could be beneficial for your overall finances. A few positive factors are:

Disadvantages of remortgaging for debt consolidation

There are also several disadvantages to consider too. It’s worth doing plenty of research before any application and weighing up whether remortgaging is the right move for you, financially. Several disadvantages include:

Am I eligible for a debt consolidation remortgage?

Borrowing on your property to tackle other financial concerns is a common occurrence among homeowners. Your application is dependent on a variety of factors, from current debts to whether you’ll be able to cover the costs of your increased payments.

Commonly asked questions about remortgaging

Still undecided on whether to consolidate your debts through remortgaging? We’ve answered some of the most common questions below.

Remortgaging details

Can I pay off a remortgage early?

You can pay off your balance at any time, however it’s worth noting that many lenders may charge an Early Repayment Fee dependent on the product. It can be great to pay off your loan early, although it’s worth checking whether it is in your interest to consider doing this.

Applying for a consolidation remortgage

There can be a lot to consider when it comes to remortgaging for debt consolidation. You’ll first need to know how much you want to borrow, then just follow our easy online application process and we’ll get to work in helping you obtain the funds you need.

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