Debt consolidation isn't suitable for everyone and it's so important to get the right advice

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    Debt Consolidation Remortgages

    If you’re curious about debt consolidation remortgages, we have you covered.

    Debt consolidation mortgages are a way of shifting and adapting your current mortgage, often switching to a new lender or even new term agreements. This could be in the form of increased monthly payments, a different interest rate, or even changing lenders altogether. Remortgaging provides a homeowner with a lump sum, which you can use however you see fit. Many use this money to:

    • Clear any debts
    • Repay credit cards
    • Pay off loans

    As it’s likely that your mortgage repayments will increase each month by remortgaging your property, this option isn’t for everyone and shouldn’t be taken lightly. At AP Mortgage Solutions, we can discuss your situation and your options, deciding whether a debt consolidation remortgage is the right choice for you. If you’re looking to decrease monthly payments, this could be achievable, but could also increase the repayment length of your debts and leave you paying off the debt for longer. However, we’ll advise you on all possibilities and the implications of consolidating before you decide anything.

    Mortgage Calculator

    Please try out our mortgage calculator below to see what your mortgage repayments might look like. Please bear in mind that this is only an estimate and a guide and is not an indicator of what is available, please contact us for more information.


    The Benefits of Debt Consolidation Remortgages

    It’s not all negative when it comes to debt consolidation remortgages, in fact, there are a plethora of advantages for homeowners across the UK. The benefits might include:

    • Changing to a better deal (almost always the case when switching lenders)
    • Additional disposable funds every month
    • One monthly payment (if everything is consolidated at the same time)
    • Knowing exactly what you’re paying each month (if switching to a fixed rate mortgage)
    • Lowering monthly outgoings
    • Paying off debts with equity

    We believe that many homeowners can benefit from debt consolidation remortgaging, but understand that this option isn’t for everyone. Get in touch with us today for more information on debt consolidation and how it can help.

    Am I Suitable for Debt Consolidation Remortgaging?

    The question of whether you qualify for a debt consolidation remortgage depends on various factors. This can include, but isn’t limited to:

    • Your Income
    • Employment Status
    • Size of Debts
    • Property Equity
    • Mortgage Length
    • Credit History

    There are certain debts that aren’t worth consolidating, such as those under £1000, those on 0% interest and those with less than 12 months to run, and in this case we wouldn’t recommend a debt consolidation remortgage. We will still take your situation into account however, whether these debts will continue to rise and what you’re looking to achieve by consolidating these debts.

    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

    You may have to pay an early repayment charge to your existing lender
    if you remortgage


    How much can I borrow?

    Debt consolidation remortgage loans can vary between £5000 and £15 million, depending on your finances and your property. Get in touch with AP Mortgage Solutions for more accurate information on loan sizes.

    How long will I have to repay my mortgage for?

    Whether you’re consolidating debts or not through a remortgage, your mortgage is likely to last between 5 and 40 years. Debt consolidation remortgages can increase or decrease this figure, depending on the deal you choose and the lender you go with.

    How much interest will I have to pay?

    The amount of interest you’ll have to pay will depend on a number of factors, including the lender you choose and the type of mortgage. With interest rates at an all-time low, it’s likely you won’t be charged excessive amounts. However, we still recommend talking to a member of our team for more advice.

    Will I have to pay fees for debt consolidation remortgages?

    It’s likely you will have to pay fees when consolidating your debt by remortgaging. However, this does vary from lender to lender and also depends on your individual circumstances. Please get in touch more more advice and to see what’s available to you.

    Debt consolidation remortgages can be quite overwhelming at first, but at AP Mortgage Solutions we are here to help. Get in touch with us today to find out more.

    01Do You Have A Will (pdf)

    02Remortgage Process Explained (pdf)

    03If You Don't Have A Will (pdf)

    What is a remortgage

    We hope the remortgage video helps explain things but if you're unsure then just drop us a line and lets talk about your options

    Debt Consolidation Remortgages

    What is remortgaging for debt consolidation?

    Debt consolidation remortgaging is a way to replace your current mortgage provider and product with new terms – often changing the amount you pay each month. By remortgaging your home you can free up a lump sum, which can then be used to clear other debts such as credit card repayments, unsecured loans or other types of finance – however it should be stressed that this is not suitable for everyone and we have to do a lot of calculations to make sure it’s beneficial and you understand the implications of adding any debt to your mortgage.

    If you wanted to remortgage your home and free up a lump sum of £5,000 to pay off an outstanding credit card debt in full, you could save months of potential interest and credit card repayments, although of course it might be the case that your monthly mortgage payment rises slightly.

    On other occasions, a debt consolidation remortgage can be used to reduce your overall monthly commitments. This might be a way of reducing your financial outgoings but it almost certainly means increasing the length of term of the debts; for example lets say you have a loan that you pay monthly for 5 years, after 5 years the loan is paid off. However you could consolidate that into the mortgage but that loan amount is now being paid potentially over a much longer time frame. This can increase the overall cost of the interest you pay in total, so you have to be aware that you would be securing previously unsecured debts against your property and this in turn means that you are reducing the amount of equity you have in your home or property.

    Read More About Remortgages

    The good bits of remortgaging for debt consolidation

    Some good things about debt consolidation remortgages include;

    You’ll almost certainly change your mortgage lender, often to a better deal if you’re on what’s called a standard variable rate
    You’ll only have one monthly payment if you consolidate everything together
    You’ll have the peace of mind that you know exactly how much you’re paying out per month
    You might be able to free up some disposable cash month to month

    The downsides of remortgaging for debt consolidation

    There’s always a downside to everything though so don’t forget this is why you need to take advice; to make sure it’s suitable for you and your circumstances:

    Your monthly mortgage payment could go up as you’re borrowing more money
    Chances are if you’re stretching a 5yr loan over 25 years you’re going to pay more in total interest.
    You might have to pay fees to switch your mortgage or even fees to set up the new mortgage so all these have to be taken into account

    Could I have a Debt Consolidation Remortgage?

    The answer is maybe. It’ll depend on a number of factors, including but not limited to; the amount and frequency of your income, your employment record, the current value of your home and how much equity you have, the size and type of debts you’re wanting to consolidate into your home, the length of time you have left on your current mortgage and your credit history. As with anything mortgage related there are certain things we can’t do and with a debt consolidation remortgage it’s the same. There are certain debts that we can’t consolidate as it just wouldn’t make sense to do so and these are:-

    Any debt that has a balance of less than £1000 at the time of advice.
    Any debt that has less than 9 months left to run at the time of advice.
    Any debt that is on 0% interest at the time of advice.

    Of course we have to take into account why you want to consolidate debt – after all lenders will want to know the following things;

    How have the debts arisen?
    Why does the client want to consolidate their debts?
    What are they looking to achieve by consolidating debts?
    How are they in the position to need to consolidate debts?


    What can I borrow?
    Loan sizes range from £5000 to £15,000,000
    How long are the repayment terms?
    A mortgage can be over 5 to 40 years.
    What are the interest rates?
    They can start from 1.14% but this will be dependent upon a number of factors and this can change on a daily basis – and you might not be eligible dependent upon your circumstances
    How much are fees?
    This depends very much on each individual lender and mortgage product but you can assume they might be up to £1000

    As you can see there’s a lot of information to take in and think about with this type of remortgage and it isn’t suitable for everyone. It’s best to talk to an independent mortgage broker that has experience of doing debt consolidation remortgages to make sure that it’s right for you and your circumstances and to clarify all the costs and fees that are mentioned above.

    If you’re wanting to have a no obligation consultation then contact us below to schedule an appointment – the first appointment is always at our expense. We are independent mortgage brokers covering Mansfield & Sutton-in-Ashfield. If you need a mortgage broker in Mansfield or mortgage broker in Sutton-in-Ashfield we’re here to help.

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