Remortgaging to pay off debt

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Is it a good idea to remortgage to pay off debt? – Whether you need advice on using equity to consolidate debt, to consolidate mortgages or to simply remortgage, at Private Wealth Mortgages we have the expert knowledge to help.

Our qualified mortgage advisors have been helping clients in many different circumstances navigate the mortgage market for more than 50 years combined. All of our plans are regulated by the Financial Conduct Authority (FCA). We are also members of the Equity Release Council (ERC), the industry body for equity release mortgages, so you’re in safe hands.

Getting yourself into debt can create added stress and worry in your life as well as being expensive if you then incur additional charges. When someone is in this situation and they own their own property, they may ask themselves ‘can I remortgage my house to pay off debt?’ or ‘can I borrow more on my mortgage to pay off debt?’

If you’re wondering how you can remortgage and consolidate debt, you would be advised to contact us to talk through your current situation. We offer a FREE no-obligation initial consultation to see if we are able to help you. Our expert advisors have experience helping a wide range of people regardless of their income, profession or credit history. We are skilled at navigating the mortgage market and liaising with lenders no matter how complicated the case maybe. In the meantime, the following information may guide you.

If you own a property with a mortgage and have incurred debts, you maybe wondering ‘can you consolidate debt into a mortgage?’ – could there be an option to increase the amount of money you borrow against your property (your mortgage) to pay them off. Although it may be variable and can change depending on the economy and agreed mortgage terms, the interest rate you may incur on a mortgage can in some cases be significantly lower than the interest rate you may be charged on a loan. However it is important to note that consolidating debts with a mortgage usually means overall costs will be higher. Although you may well pay less each month, because mortgages are arranged over a much longer term, you are likely to end up paying more interest overall.

This process usually involves increasing the amount of money you borrow from a lender so you can then allocate that money to pay off the credit card or loan you’ve taken out. This process is known as consolidating your debts and can provide a solution to help you manage your finances more effectively. You need to consider this decision very carefully, and bear in mind that your home is at risk if you fail to keep up repayments on your mortgage.

If your debts have become unmanageable and you have serious concerns about repayments or covering the cost of your mortgage, we recommend calling one of the Private Wealth Mortgages team immediately. We will be able to make recommendations for the type of mortgage that would help you manage the application process or put you in touch an organisation that can help if you are looking for an alternative solution.

Once you have assessed whether you can afford to borrow more money on your mortgage, it’s time to review the options available to you. One option is to approach your existing mortgage lender for a Further Advance, which is an additional amount of money added onto your current mortgage. This is subject to all the usual criteria and affordability checks. If you are coming to the end of your current mortgage term, you can either choose your existing lender and request a new mortgage arrangement taking into account the additional funds you’d like to borrow. Or alternatively you can apply for a mortgage from a new bank or lender. At Private Wealth Mortgages, we will discuss the options available to you, based on your financial circumstances and goals.

One of our expert and qualified mortgage advisors will be more than happy to help you consider your options if you want to remortgage to consolidate your debt. We take the time to get to know you, your financial situation and personal goals, before presenting you with a range of appropriate options. 

We offer a free, no-obligation initial consultation, so give one of our friendly advisors a call on 01403 270006 or email: info@privatewealthmortgages.co.uk

Call our expert mortgage advisers today

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Private Wealth Mortgages Ltd is authorised and regulated by the Financial Conduct Authority. FCA Number: 445980

Private Wealth Mortgages Ltd, Hillreed House, 54 Queen St, Horsham, West Sussex, RH13 5AD

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