Consolidating debt into your mortgage? Know the real cost first.
A debt consolidation remortgage rolls credit cards, loans or other debts into your mortgage, replacing several payments with one lower monthly figure. It can ease cash flow — but because you spread the debt over the mortgage term, it can cost more in total interest and turns unsecured debt into debt secured on your home. As a whole-of-market, FCA-authorised brokerage, we model the full cost so you decide with the real numbers.
- TypeResidentialOwner-occupier lending
- Deposit / equity5–25%+Depends on the scheme and rate
- ServicePhone · video · emailAdvised around your schedule
- AdviceWhole-of-marketDirectly FCA authorised
How it works
You remortgage for more than you currently owe on the property; the extra raises cash that clears your other debts. You're left with one mortgage payment, usually at a lower interest rate than cards or personal loans — but repaid over a much longer period than those debts would have been.
The trade-off nobody explains
Lower monthly cost is not the same as lower total cost. A £10,000 card cleared over 25 years at a mortgage rate can cost more than paying it over three years, even at a higher card rate — because of the term. And your home is now at risk if you don't keep up repayments. We show both numbers side by side.
When it can make sense
Consolidation can genuinely help when the monthly saving prevents missed payments, when you commit to overpaying to shorten the term, or when a second charge protects a very low existing rate. Related: capital raising and the guide debt consolidation remortgage: is it worth it?.
Contractors and complex income
If your income is day-rate, umbrella or newly self-employed, affordability for the larger loan needs the right lender — the same specialist approach we use across contractor mortgages.
Estimate and compare
Model it with the contractor mortgage calculator, then speak to an adviser for a full cost comparison.
Lenders we arrange capital-raising with — a selection
Lender guides: Halifax · Barclays · HSBC · NatWest · Nationwide · Accord · Clydesdale · Yorkshire BS · Kensington See how we place cases →
Debt Consolidation Remortgage, answered
Is a debt consolidation remortgage a good idea?+
It can lower your monthly payments, but often increases total interest because the debt is spread over the mortgage term — and it secures former unsecured debt against your home. Compare the full cost first.
Will I pay more overall?+
Frequently yes, unless you overpay to shorten the term. A lower monthly figure over 25 years can cost more than clearing the debt quickly at a higher rate.
Can I consolidate debt with bad credit?+
Sometimes, with specialist lenders, though rates may be higher. See our adverse-credit options.
Is a second charge better than a remortgage?+
It can be, if it preserves a very low existing mortgage rate. We compare both routes for your situation.
How much can I raise?+
It depends on your equity and affordability. A larger deposit of equity and stable income widen the options.