Debt Consolidation
Debt Consolidation Remortgage: Is It Right for You?
Rolling loans and credit cards into your mortgage can lower your monthly payments. But it can also mean paying more over time, and your debts become secured on your home. Here is how it works and the questions to ask first.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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Think Carefully
Lower Monthly Payments Can Cost More Overall
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
- ✓Monthly cost: one payment, often lower than all your debts together
- ✓Total cost: spreading debt over a long mortgage term can mean more interest
- ✓Security: unsecured debts become secured on your home
- ✓Fees: early repayment charges and product fees may apply
How We Help
How We Look at Debt Consolidation
Five steps before anything is decided.
List Every Debt
Balances, rates and payments, so we can see the full picture.
Compare the Options
Sometimes consolidating helps. Sometimes paying off debts another way is better.
Work Out the Real Cost
We show you the total cost over time, not just the monthly saving.
Check Your Mortgage
Early repayment charges, your rate and how much equity you have.
Plan to Stay Clear
Consolidating only works if old cards are not run up again.
Things to Consider
Before You Consolidate
Every situation is different.
Credit Cards
High rates can make consolidation look attractive, but think about the term.
Check My Options →Car Finance
Some car finance has its own settlement rules. Check before you include it.
Talk It Through →Credit Problems
If debts have already caused missed payments, specialist lenders may be needed.
Book a Chat →Common Questions
Debt Consolidation Questions, Answered
The things homeowners ask us most.
Can I add my debts to my mortgage?
Often, yes, if you have enough equity and can afford the new mortgage. Think carefully, as your debts become secured on your home.
Is debt consolidation a good idea?
It can lower monthly payments, but you may pay more over time. We will show you both sides.
Will it affect my credit score?
Paying off debts can help over time, but a new application means a credit search.
Can I consolidate with bad credit?
Sometimes, with specialist lenders. Rates may be higher.
What is the difference between a remortgage and a further advance?
A remortgage moves you to a new lender. A further advance is borrowing more from your current lender.
What if I am already struggling with payments?
Speak to your lender and a free debt advice service as soon as you can.
Related guides
- Bad credit mortgages Scotland
- What happens when your fixed rate ends
- Remortgaging for home improvements
- How much can I borrow?
- All mortgage questions answered
Written by Tony Flynn, mortgage broker at Tony Flynn Mortgages, helping homebuyers across Lanarkshire and Scotland. This page is general information, not personal advice. Speak to Tony about your own circumstances.
Get in Touch
Want a Straight Answer on Your Debts?
Fill in the form and we will be in touch within one working day. We will look at your mortgage and debts together and tell you honestly if consolidating makes sense.