Debt Consolidation Mortgages

Debt consolidation is the process of taking out a larger loan to pay back smaller debts. Therefore, when you take out a debt consolidation mortgage or a remortgage, you use the available equity in your home to help pay off smaller unsecured debts such as credit card bills and personal loans. By releasing some of the money you've already paid towards owning your own home, you can reduce your overall debt and streamline everything into just one monthly mortgage payment.

    Get the expert mortgage advice you need now and it won't impact your credit history:

    Is debt consolidation right for you?

    It's difficult to say until we learn more about your unique situation and the debts you're looking to consolidate. If you're having difficulty paying back the various debts you have, a debt consolidation mortgage could be an ideal solution, and there are two ways to do this.

    1. Remortgaging your total debt with a new lender

    This approach enables you to arrange a new mortgage for your existing mortgage's value, added to the debt you have. For example, if you have a mortgage to the value of £200,000 and debts of £20,000, you will take out a mortgage with a new lender for £220,000.

    2. Retaining your mortgage and taking out a new loan
    (secured against your home)

    This means you'll essentially have two mortgages on your property. For example, you could keep your £200,000 mortgage and take out a new secured loan for the value of your debt (£20,000).

    Every situation is unique, so to better understand the approach that’s best for you, we recommend speaking to one of our debt consolidation mortgage brokers today. Our advisers take the time to assess your financial situation, and we're vastly experienced in all aspects of borrowing money for debt consolidation.

    Contact a broker today

    Is a debt consolidation remortgage possible with adverse credit?

    Yes, it's entirely possible, but it does depend on the severity of your credit history. Some lenders are happier to process debt consolidation mortgage applications than others. At the same time, most high street banks and building societies will need to see a history of payments being kept up to date to consider your application. Create Finance has helped many borrowers get the right deal for their unique financial situation with access a comprehensive range of lenders in the mortgage market, making their life easier whilst bringing down their monthly costs. We can help you decide whether a debt consolidation mortgage or remortgage is right for you, whilst we can streamline the complete process, including research, comparisons and application.