We compare hundreds of home loans from up to 95 different lenders. Call us now on 01604 439930

Remortgage for debt consolidation

Paying off all your existing debts and unsecured loans by remortgaging your property is one of the best solutions to be free from worrying about higher repayment amounts and higher interest rates. Remortgaging to consolidate debts and secured loans means much cheaper interest rates compared to unsecured personal loans or credit card loans.

It is the easiest solution to reduce monthly payments as well as saving a lot of money on interest rates.

If you are paying £495.00 a month on your mortgage and £790.00 a month on all your other loans then a real saving can be had by remortgaging to the lesser interest rate. Add to that if you are comfortable paying the combined amount each month you can also increase your monthly payment on the remortgage reduce the term of the loan.

You can choose two ways to remortgaging, first if you have a mortgage of £100K and an unsecured loan of £50K then you can remortgage your property at £150K (also remembering to ensure that none of the other loans include 0% finance).

An alternative scenario is where you already have a mortgage with a lifetime interest rate of 0.75%, if you remortgage that from scratch then the interest rate is likely to be higher, in which case it would be sensible to opt for a second charge mortgage. This means getting a loan for £50K from a different lender which would benefit you with a lower interest rate than that for an unsecured loan and additionally repayment instalments would be lower compared to  current instalments.

Apply for Remortgage for debt consolidation


Enquire Now

Frequently Ask Questions

We at Remortgage Professionals have many different remortgaging deals for debt consolidation to fit your requirements. Remortgaging with a new lender may increase your chances of achieving a higher property values as well as a lower interest rate.

Equity is the difference between the actual market price of a property and the pending mortgage value. For instance, if your home has valued at £90,000.00 and your pending mortgage value is £55,000.00 then the equity value is £35,000.00 and the Loan to Value (LTV) is 61.1%, which is the percentage of pending mortgage to the total value of the property

You may have paid more than half of the mortgage amount on your home and might want to buy a new house and are considering a remortgage to do this; before this can happen we need to confirm whether you are remortgaging to buy a house for your extended family or kids or if you are buying as an investment or to rent out to tenants. If you want it for your kids or extended family then you can remortgage your current property to pay the up-front payment or to pay some initial expenses.

However, if you are planning to buy for investment purposes and you want to let it out to tenants than you can’t remortgage your residential property as this would be considered a commercial property; a residential property cannot be remortgaged for commercial purposes.

In order to remortgage your current property you must have paid off some of the original loan, for example if you own a house and its value is £100k and you made an initial payment of £10K and took a loan for £90k, but a couple of years later, you have only repaid £2k and the value of your house has increased by £1k this means that the value of the house is £110k and your pending mortgage is £70k. At this point the equity value is the difference between the value of your home and a pending mortgage which in the case of the above example will be £40k.

So, you can remortgage your home to get the additional £40k and if remortgaging to release the equity, you can remortgage part of the equity as well, which means you can borrow £20k or £30k of £40k

If you are self-employed then getting a loan would be harder, but it’s not an impossible task. Agreed it was easy to borrow money in previous years but now it is quite a cumbersome process. If you need a loan and you are a businessman, freelancer or self-employed then you need to show proof that your income is stable.  Lenders will want to see your tax returns, bank account statements as well as an income report along with any kind of cash deposits ; if you have these then your rating will be higher than self-employed borrowers without such evidence.

Get a Quote

Now apply for a remortgage for debt consolidation,
all you need to do is provide your details in the application form below.

In order to process your enquiry we will need to contact you via one or all of the methods listed below, by submitting your enquiry you are consenting to us making contact (see our Privacy Statement below). Please tick each of the methods that you agree we can contact you by:

document.addEventListener('wpcf7mailsent', function( event ) { location = 'https://remortgagerate.co.uk/remortgage-deals/'; }, false );