Yes, you can remortgage your home to help clear existing debts. This is known as a debt consolidation remortgage. It works by replacing your current mortgage with a new one that’s large enough to cover both your existing balance and the debts you want to pay off, such as credit cards or personal loans. 

The main benefit is that it can reduce your monthly payments by spreading the debt over your mortgage term, often at a lower interest rate than most unsecured borrowing. This can lead to freeing up cashflow of hundreds or even thousands of pounds per month, giving customers breathing space to get their finances tidied up and back on track.

However, it’s important to be aware that doing this turns unsecured debts into secured debt against your home, meaning your property could be at risk if repayments aren’t maintained. It can also mean paying more interest overall because the repayment term is longer.

At Proper Advice, we’ll help you explore the best options for consolidating your debts via a remortgage.

While a debt consolidation remortgage can simplify your finances and lower your monthly outgoings, it’s not the right choice for everyone. Here are a few things to consider:

• Spreading unsecured debts (like credit cards or loans) over your mortgage term can mean paying more interest overall, even if the monthly payment is smaller.
• By rolling debts into your mortgage, they become secured against your property. If you can’t keep up with repayments, your home could be repossessed.
• There may be arrangement fees, valuation costs, or early repayment charges if you’re switching before your current deal ends.
• Increasing your mortgage balance could limit your options when remortgaging again or moving home.

It's important to have a chat with one of our advisors surrounding the above. We'll give you the full lowdown on whether debt consolidation may be right for you.

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, 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.

Consolidating your debts into a new mortgage usually takes around four to eight weeks, though it can vary depending on the lender and whether a property valuation is needed. Here’s how it generally works:

• Initial chat: We start by going through your finances and discussing the best way forward for your situation.
• Application: Once you’re happy to proceed, we’ll pull the paperwork together, ensure your file is fully packaged, and send your application to the lender.
• Valuation: Lenders will either carry out an automated "desktop" valuation, or they'll get one of their valuers to come out and value the property at a time that's convenient to you.
• Approval and completion: When everything’s approved, we get your Mortgage Offer and guide you through the final legal steps, the new mortgage is set up. At this point your existing debts are cleared, and your new payments begin.

We handle the process from start to finish, keeping things moving and making sure you’re kept in the loop at every step.