Where do I start?
Time to remove the stress and get support to finally consolidate those monthly outgoings into just one payment. Please do not worry! Debt Consolidation through a remortgage is quite normal, and The Mortgage Broker offers all the support and help you need to do this.
Debt Consolidation enables you to combine all your debt into one loan. This will allow you to make one payment per month, meaning less hassle, less stress and most of all, just one interest payment.
- All Debts into 1 Payment
- Reduce Monthly Outgoings
- Raise Additional Cash
- Secure A Better Mortgage Deal
managed to secure a great deal against our existing mortgage... and we were able to use this to pay off some existing debt and do house renovations
Speak to a mortgage adviser as soon as possible and remove the stress. The Mortgage Broker can help you consolidate your debt through a simple remortgage and will be with you every step of the way.
Remortgaging for debt consolidation – A guide to what you need to know
Having debt looming over you can be incredibly difficult to deal with. Therefore, you may want to explore the options that are available to you in order to consolidate the debt you have built up and remortgaging for debt consolidation is one of the ways you can approach the debt-clearing process.
Opting to remortgage to ease credit card debt is an option. You can remortgage to release some of the equity in your home, which can be used to clear the debt that has accrued on your credit cards. Most people think consolidating your debt won’t have an impact on your credit rating, however, it does temporarily affect your credit rating. Anytime you apply for a form of credit, your credit score will reduce, so when you initially consolidate your debt your rating will slightly dip. However, once you have received the cash lump sum and have cleared the debt, your credit score will improve over time due to an absence of outstanding debts.Can you remortgage to help with credit card debt?
Will consolidating your debt hurt your credit rating?
Remortgaging for debt consolidation – How does this affect my mortgage rate?
Whether remortgaging for debt consolidation impacts your mortgage rate will depend on your personal circumstances.
If you have poor credit and you want to apply for a mortgage to consolidate your debt, you could end up getting a higher interest rate due to your outstanding credit issues.
However, if you don’t have a poor credit history initially, the mortgage rate you receive will usually be in line with that of a ‘standard’ mortgage.
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When is the best time to remortgage to consolidate your debts?
Remortgaging to consolidate debt usually means you have explored most other avenues, as it’s never recommended to take unsecured debt against the security of your home.
We tend only to advise people to remortgage for debt consolidation once all other options have been exhausted, so it’s best to approach the remortgage option as a last resort.
However, if you’re borrowing to pay off short-term debt, we would advise against remortgaging for debt consolidation altogether as when you’re remortgaging, you’re going to be paying back high interest due to its longer term nature.
Secured loan versus remortgaging
If you are looking to consolidate debt, it’s a good idea to weigh up both a secured loan and remortgage as a resolution.
With a secured loan, you take out a loan against your home – it’s easier to be arranged if you have poor credit in the background and they also allow you to borrow more money.
If you have a strong credit rating and are in a good financial position, remortgage may be a better option as the interest rate you pay will be competitive and in line with ‘standard’ mortgage rates.
Is there a limit to the number of times you can remortgage to consolidate debt?
There are no set-in-stone rules to determine the number of times you can remortgage for debt consolidation, however, the more times you do remortgage, the more it’s going to reflect badly on your credit score and lenders will begin to ask questions about the way you manage your finances.
Remortgaging can be a great way to consolidate debt as it frees up your disposable income so you can still focus on other financial commitments you may have, however, it shouldn’t be seen as a regular way to relieve debt troubles.
When should I remortgage for debt consolidation?
It’s important to note that you need to actually own your property and have equity tied up in it that you can release. With adequate ownership and equity at any point in your mortgage process, you can look to remortgage for debt consolidation.
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If you are looking to secure a remortgage to consolidate debt at any point in your mortgage journey, your chances are increased automatically by going through the process with a mortgage broker at your side due to the number of lenders they can explore.
We offer free initial consultations to give you an idea of your options and discuss whether remortgaging for debt consolidation is the right avenue for you to personally go down. If you decide to go ahead with us, we will guide you through the remortgaging process and get you on your way to consolidating your debts and living a life free from any debt worries.
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