Debt Consolidation Calculator

Yes, you can! Consolidating debt through a mortgage or remortgage allows you to combine high-interest debts—like credit cards, personal loans, and overdrafts—into a single monthly payment.

The key benefit is that mortgage interest rates are often much lower than rates on unsecured debt, meaning you could save money and simplify your finances at the same time. By reducing the number of payments you have to manage, you can regain control and reduce financial stress.

At Proper Advice, we’ll help you explore the best options for consolidating your debts while keeping your monthly payments manageable.

The amount you can borrow depends on two main factors:

• Your property’s equity: This is the difference between your home’s value and what you still owe on your mortgage. The more equity you have, the more borrowing power you might have.
• Your financial situation: Lenders will also consider your income, expenses, and credit history to determine how much you can borrow.

For example, if your home is worth £300,000 and you owe £200,000 on your current mortgage, you could potentially borrow up to 80% of your home’s value (£240,000), allowing you to release £40,000 for debt consolidation.

Our advisors will work closely with you to calculate what’s possible and ensure the solution fits your financial goals.

Consolidating debt can have an impact on your credit score, but the effects can be both positive and manageable:

• Short-term impact: The credit check performed during your remortgage application may cause a slight dip in your score initially.
• Long-term benefits: By making consistent payments on your new mortgage, you’ll build a positive payment history, which can improve your credit score over time.

The key is to ensure your new payments are affordable and sustainable. Our team at Proper Advice will work with you to structure your remortgage deal so that it supports both your immediate needs and long-term financial health.

Yes, there can be fees associated with consolidating debt through a mortgage or remortgage, but we’ll always give you a clear breakdown upfront. Common fees include:

• Arrangement fees: Charged by the lender for setting up the new deal.
• Exit fees: If you’re leaving your current mortgage before the end of its term, your lender may apply early repayment charges.
• Legal and valuation fees: For transferring the mortgage and confirming your property’s value.

Our advisors will ensure that any fees are outweighed by the savings and benefits of your new deal, giving you peace of mind that the decision makes financial sense.

Yes, having bad credit doesn’t mean you can’t consolidate debt through a remortgage. Many lenders specialise in helping clients with less-than-perfect credit histories.

These lenders focus on the bigger picture, taking into account factors like your income, equity, and current financial situation rather than just your credit score. While the interest rate may be slightly higher than standard deals, consolidating debt through a remortgage can still help reduce your overall financial burden.

At Proper Advice, we work with specialist lenders who understand credit challenges, helping you find a solution that works for your circumstances.

The process of consolidating debt through a remortgage typically takes 4-8 weeks, depending on factors like lender requirements and property valuations. Here’s an outline of the steps:

1. Initial Consultation: We’ll review your financial situation and recommend suitable options.
2. Application Process: We’ll help you gather the necessary documents and submit your application to the lender.
3. Property Valuation: If required, the lender may arrange a valuation of your property.
4. Approval and Completion: Once approved, your debts will be consolidated, and your new mortgage payments will begin.

Our team will keep everything on track, ensuring the process is as smooth and stress-free as possible.