A debt consolidation remortgage is a financial strategy that involves refinancing your existing mortgage to include other high-interest debts, such as credit card balances and personal loans. By rolling these debts into your mortgage, you create a single, manageable monthly payment, often at a lower interest rate. This simplifies your financial obligations and can lead to potential savings each month.

You can typically consolidate various unsecured debts, including credit card balances, personal loans, store card debt, and even car loans. However, you can also consolidate debts that are secured against your property, such as secured loans or the Help to Buy equity loan. The goal is to streamline multiple high-interest debts into one mortgage with a lower interest rate.

Evaluating the long-term savings of debt consolidation requires careful consideration. You should calculate the total interest cost of your existing debts and compare it to the estimated interest cost of the consolidated mortgage. Bear in mind the potential monthly savings you may make by consolidating your debts, and what this extra cash can be used for (such as investing, saving or purchasing another property). It's always good to have a plan once your new mortgage is in place to make the most of the monthly savings you may be making.

While a good credit score can improve your chances of qualifying for favourable interest rates, it's still possible to secure a debt consolidation remortgage with less-than-perfect credit. However, you may face higher interest rates or additional requirements. Lenders consider various factors, including your credit history, income, and the loan-to-value ratio of your home.

Generally, a debt consolidation remortgage takes no longer than a normal remortgage. We aim to have you completed within about 4-6 weeks start to finish. If you are lining up a new deal to go live when your current mortgage deal expires, then we will ensure this happens the day you are eligible to switch with no penalties.