If you are looking to reduce your debts, remortgaging is often the best option as it allows you to pay off your debts whilst also often being the cheapest way to borrow money, keeping interest rates low and helping you to keep on top of your debts in the long term.
To be able to do this, you must have enough equity in your property to let you borrow the extra cash needed.
For example, if you were to get a 90% loan-to-value product against your current mortgage worth £150,000, the maximum amount you can borrow including your current mortgage would be £135,000.
If your current mortgage is £125,000, then you would be able to consolidate £10,000.
By consolidating loans and credit cards into a mortgage product, then you would see a reduction in interest rates and monthly repayments.
What is a debt consolidation remortgage?
A debt consolidation remortgage is the same as a normal remortgage application, but with a lender that allows raising capital to pay off the debts at the loan-to-value amount you are looking for.
Each lender has a different set of guidelines, and a different maximum amount that they are prepared to lend.
We have access to a wide panel of lenders, so we can submit your application to the most suitable lender for your circumstances.
You will also have to pass the usual credit assessments to prove that you can afford the new repayments.
Your credit score will usually be checked, and again, each lender has a different set of criteria for lending depending on your credit score, so it is important to talk to an adviser who can work across a wide panel of lenders to find the most appropriate for your situation.
Click here to talk to one of our expert advisers about consolidating your debts through remortgaging