Remortgage to Consolidate Debt – Cut Monthly Payments | Struggling to keep up with multiple debts? If you’re a homeowner, your mortgage could be the key to simplifying your finances. By remortgaging to consolidate debt, you can merge multiple loans into a single affordable monthly payment, reducing stress, lowering interest rates, and gaining control of your finances.

What Is Remortgaging to Consolidate Debt?

Debt consolidation through remortgaging means replacing your current mortgage with a new one, usually for a higher amoun,t and using the equity you’ve built up in your home to pay off unsecured debts like:

• Credit cards

• Personal loans

• Car finance

• Overdrafts

Instead of managing multiple payments at different rates and due dates, you’ll have one manageable repayment. For many, it’s a way to reduce total outgoings and ease the pressure on monthly budgets.

📎 Explore your options on our Types of Mortgages page.

Key Benefits of Debt Consolidation via Remortgaging

• Lower Monthly Payments – Mortgage interest rates are typically lower than unsecured debt rates.
•  Simplified Finances – One payment, one lender, less stress.
• Improved Cash Flow – Free up income to save or invest.
• Fixed Rate Options – Lock in predictable payments for peace of mind.
• Improve Credit Score – Reducing credit utilisation can improve your credit profile over time.

Is Remortgaging Right for You?

Before remortgaging to consolidate debt, it’s important to assess your financial situation and understand the pros and cons. Key questions to consider:

• Do you have enough equity in your property?

• Are you nearing the end of a fixed-rate deal?

• Are there early repayment charges with your current lender?

• Will you extend your mortgage term significantly?

• What is your current credit rating?

⚠ If you’re dealing with adverse credit, see our Bad Credit Mortgage Advice for tailored support.

✅ Pros	⚠️ Cons
Lower interest rates than most unsecured debt (e.g. credit cards, personal loans).	Unsecured debts become secured against your home—risking repossession if unpaid.
One simple monthly payment makes finances easier to manage.	Extending your mortgage term may result in paying more interest overall.
Improved cash flow—reduce monthly outgoings and ease budgeting.	Early repayment charges may apply if you leave your current mortgage deal.
It may improve your credit score over time by lowering credit utilisation.	Temptation to rebuild debt on cleared credit cards if spending habits don’t change.
Access to fixed or flexible remortgage deals tailored to your needs.	A higher loan-to-value (LTV) may limit your lender options or increase your rate.
It may help avoid insolvency options such as IVAs or bankruptcy.	Short-term dip in credit score due to new application and closed accounts.

Alternatives to Remortgaging

Remortgaging isn’t always the best route. Alternatives include:

• Homeowner Loans – A secured loan separate from your mortgage. See: Homeowner Loans

• Debt Management Plans – Structured repayment plans with creditors.

• Equity Release – For older homeowners seeking debt relief without monthly payments.

It’s wise to compare all options before deciding.

Who Typically Benefits?

• Homeowners with stable income and equity

• Those paying high-interest credit card or personal loan debt

• Borrowers near the end of a mortgage deal

• Individuals seeking financial simplicity and clarity

Even if your credit isn’t perfect, some lenders offer flexible underwriting, especially when consolidating debt for a clear financial purpose.

How We Can Help

At Connect Brokers, we understand that debt consolidation is a personal decision. Our expert Mortgage Broker Services offer:

• Free mortgage health checks

• Access to specialist and mainstream lenders

• Guidance through complex cases

• Transparent advice tailored to your goals

Find Mortgage Advisers

Thank you for reading our publication “Remortgage to Consolidate Debt – Cut Monthly Payments.” Stay “Connect“-ed for more updates soon!