Debt Consolidation
Combine all your debts into one lower monthly payment. Consolidating through a remortgage can significantly improve your cash flow.
What is debt consolidation through a mortgage?
Debt consolidation involves combining several debts (credit cards, personal loans, overdrafts) into a single mortgage. Instead of multiple high monthly payments, you make one lower monthly payment. Mortgage interest rates are typically significantly lower than those on unsecured debts.
When does consolidation make sense?
- You have several high-interest debts (credit cards, loans)
- Your monthly payments are too high and difficult to manage
- You have sufficient equity in your property
- You want to simplify your finances with a single payment
Risks of consolidation
Consolidating debts through a mortgage carries risks worth considering:
- You're converting unsecured debt into secured debt — your home becomes the collateral
- You may pay more interest overall if you spread repayment over many years
- Requires sufficient equity in the property
Our advisers will carry out a full cost-benefit analysis before you make a decision.
Important warning
Consolidating unsecured debts into a mortgage means your home may be at risk if you have difficulty making repayments. Always consult a financial adviser before making this decision.
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