Remortgaging to pay off debt may reduce your monthly outgoings by consolidating credit cards, loans and other unsecured debt into your mortgage. But the debt becomes secured against your home and the total amount repayable over the term may increase. Understanding both sides is essential before proceeding.
Updated July 2026
Yes, you can remortgage to pay off debt, including credit card debt. You increase your mortgage balance and use the extra funds to clear unsecured debts such as credit cards, personal loans or car finance. Monthly outgoings may fall, but the debt becomes secured against your home, and the total amount repayable over the mortgage term is typically higher.
Yes. A debt consolidation remortgage increases your mortgage balance and uses the additional funds to clear unsecured debts. The result is one monthly payment instead of several, often at a lower combined rate.
When you remortgage to pay off debt, you release equity from your property by borrowing more than your current outstanding mortgage. The additional funds are used to settle credit cards, personal loans, car finance, overdrafts or other unsecured borrowing. Your total monthly outgoings may fall because mortgage interest rates are typically lower than unsecured borrowing rates.
However, this is not straightforward consolidation. The debts you clear move from being unsecured, meaning a creditor cannot take your home if you default, to being secured against your property. This is a significant change in the nature of the debt and must be considered carefully before proceeding. A whole-of-market broker assesses whether this approach is appropriate for your individual circumstances before recommending it.
Your home may be repossessed if you do not keep up repayments on a debt consolidation remortgage. Debts that were previously unsecured become secured against your property. While monthly payments may reduce, the total amount repayable over the full mortgage term may be higher than if you had kept the debts separate, because the debt is spread over a longer period, even at a lower interest rate.
This illustrative example shows the potential reduction in monthly outgoings and the important trade-off between lower monthly payments and higher total cost.
| Before consolidation | Amount | After consolidation | Amount |
|---|---|---|---|
| Existing mortgage payment | £780/mo | New consolidated mortgage payment | £1,050/mo |
| Credit card minimum payments | £240/mo | ||
| Personal loan repayment | £310/mo | ||
| Car finance | £195/mo | ||
| Total monthly outgoings | £1,525/mo | Monthly saving | £475/mo |
| Unsecured debts, not secured against the property | All debts now secured against home; total repayable over term is higher overall | ||
Illustrative only. The monthly saving shown does not account for the increase in total amount repayable over the full mortgage term. Individual outcomes vary.
Most forms of unsecured borrowing may be consolidated through a remortgage, subject to lender criteria and available equity in the property.
Balances across multiple cards cleared with a single remortgage draw.
Bank and unsecured personal loans with high interest rates.
PCP and HP agreements subject to settlement figure and lender criteria.
Current account overdrafts and arranged credit facilities.
Retail and store card balances typically at high interest rates.
Other forms of unsecured borrowing subject to individual lender review.
You need sufficient equity in your property to cover your existing mortgage balance plus the additional borrowing. Most lenders require you to retain at least 20% equity after the remortgage, meaning the new total mortgage generally cannot exceed 80% of the property value. A broker calculates the maximum available based on your current balance, property value and the debts you want to consolidate.
This guide covers debt consolidation for homeowners with a clean or generally strong credit history. If you also have missed payments, defaults, CCJs or other adverse credit, specialist lenders assess debt consolidation differently and typically apply different loan-to-value limits and rates. See our bad credit remortgage guide for how that process works.
We assess your equity, the debts you want to consolidate, and current remortgage rates to calculate whether consolidation would reduce your monthly outgoings and what the total cost implications are over your mortgage term.
No fee for the initial discussion. A non-refundable £299 broker fee is payable on receipt of a formal mortgage offer (only if you choose to proceed).
A debt consolidation remortgage is not the right solution for everyone. Understanding both sides is essential to making an informed decision.
Monthly outgoings may reduce significantly if the combined mortgage payment is lower than the multiple debt payments it replaces. One single monthly payment simplifies budgeting and reduces the risk of missing individual debt repayments. Mortgage interest rates are typically lower than unsecured borrowing rates such as credit cards and personal loans. Clearing credit cards and loans in full may improve credit utilisation over time.
Unsecured debts become secured against your home; if you cannot repay, your home could be repossessed. The total amount repayable over the full mortgage term is typically higher, even at a lower interest rate, because the debt is spread over many more years. If you continue to use credit cards and accumulate new unsecured debt after consolidation, your financial position may worsen. Early repayment charges may apply if you remortgage before your current fixed term ends.
Reviews and testimonials reflect individual experiences and do not guarantee outcomes. Reviews should not be relied upon when making a financial decision.
This guide is intended for homeowners in the UK considering a remortgage to consolidate unsecured debt.
A debt consolidation remortgage may not be suitable where the available equity is insufficient, where the new mortgage rate would not produce a meaningful reduction in outgoings, or where the additional debt secured against the property creates a risk of repossession that outweighs the benefit. It is not suitable where the homeowner intends to continue accumulating unsecured debt after consolidation. You should consider whether a debt management plan, balance transfer, or free debt advice from StepChange is more appropriate for your circumstances.
Converting unsecured debt to secured debt increases the risk to your home if you cannot maintain repayments. The total cost over the mortgage term will typically be higher even if monthly payments reduce.
If your circumstances involve financial difficulty, ill health, recent bereavement, caring responsibilities, language difficulties, or any other situation that may affect how you take in information or make decisions, please let us know. We can take this into account and adapt how we communicate with you.
Any mortgage recommendation is provided only after a full regulated advice process. We will explain if a debt consolidation remortgage is not suitable for your circumstances.
All remortgage options including fixed rate ending, raising capital and switching lenders.
What to do when your fixed rate deal comes to an end and how to avoid the standard variable rate.
How lenders assess remortgage applications where the applicant has defaults, late payments or a low credit score.
How overpaying works, the 10% allowance rule, and whether it beats saving.
We assess your equity, the debts you want to consolidate and current market rates to calculate whether a debt consolidation remortgage would reduce your monthly outgoings and confirm the full cost implications before you make any decision.
Think carefully before securing other debts against your home. A £299 broker fee is payable on receipt of a formal mortgage offer if you choose to proceed; this fee is non-refundable once the offer has been issued, whether or not the mortgage completes. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Discuss Debt Consolidation RemortgageRegulatory status: Woodhall Mortgages is authorised and regulated by the Financial Conduct Authority. Firm reference number 762513. You can verify this on the Financial Services Register.
Whole-of-market advice: Woodhall Mortgages is a whole-of-market mortgage broker. We consider a comprehensive range of mortgages from across the market, but not all lenders or products may be included.
Fee: A £299 broker fee is payable on receipt of a formal mortgage offer if you choose to proceed. This fee is non-refundable once the offer has been issued, whether or not the mortgage completes, because work has been carried out on your behalf in researching the market, preparing and submitting the application, and securing the offer. No fee is charged if a formal mortgage offer is not issued. We may also receive commission from the lender; this will be disclosed before you proceed.
Early repayment charges: Remortgaging before the end of a fixed rate term may incur early repayment charges set by your current lender. These will be outlined in your current mortgage documents and discussed with you before you proceed.
Vulnerability: If your circumstances involve financial difficulty, ill health, recent bereavement, caring responsibilities, language difficulties, or any other situation that may affect how you take in information or make decisions, please let us know. We can adapt how we communicate with you.
Think carefully before securing other debts against your home. While monthly payments may reduce, the total amount repayable over the full mortgage term may be higher. Consolidating unsecured debt into a mortgage means debts that were previously unsecured become secured against your property. Your home may be repossessed if you do not keep up repayments on your mortgage.
This is a financial promotion intended for UK consumers. This page is for information purposes only and does not constitute regulated mortgage advice or a personal recommendation. Last reviewed: July 2026. Woodhall Mortgages, Croft Myl, West Parade, Halifax, West Yorkshire, HX1 2EQ.
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