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If you're juggling £20,000, £30,000 or more in credit card and loan debt, remortgaging could combine it all into a single monthly payment secured against your home.
Yes, you can remortgage large debts, and debt consolidation is one of the most common reasons homeowners remortgage. You take out a new, larger mortgage that pays off your existing mortgage and clears other debts, such as credit cards, personal loans and car finance, at the same time.
Whether it's the right choice depends on your equity, income, the interest rates on your existing debts, and whether you've addressed the reason the debt built up in the first place. Speak to a mortgage advisor to compare your options and work out the true cost before deciding.
Large debt consolidation
Our advisors compare remortgage options from a wide range of lenders, including specialists who consider large and complex debt consolidation cases.
The basics
Remortgaging large debts, whether that's £20,000, £30,000, £50,000 or more spread across credit cards, personal loans and other borrowing, can bring your monthly outgoings down substantially by combining everything into a single mortgage payment. Remortgaging to pay off debts means taking out a new, larger mortgage that pays off your existing mortgage and clears the other debts at the same time.
Credit card and personal loan interest rates are typically far higher than mortgage rates, which is why rolling debt into your mortgage can look attractive. But remortgaging to consolidate large debts isn't as straightforward as a standard remortgage, and getting it wrong could put your home at risk.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
A few things to understand before you start:
We connect you with specialist brokers and lenders rather than lending directly, comparing a wide range of providers to find remortgage options that suit your circumstances, including large debt consolidation cases. Speak to a mortgage advisor for personalised guidance before you commit to anything.
When you remortgage to consolidate large debts, lenders scrutinise your income, outgoings and existing debts more closely than they would for a standard remortgage. They need to be confident you can afford the new, larger monthly payment, so they'll assess your affordability, credit history, property value and current mortgage balance together.
Lenders also stress test whether you could afford the new mortgage at a higher interest rate than the one you'd actually pay. When you're adding £30,000 or more of debt to your mortgage, this calculation gets tight. Even homeowners on solid incomes can fail an affordability check if their existing debt repayments are high, which is frustrating when the whole point of remortgaging is to bring those payments down.
Most lenders cap the maximum LTV for debt consolidation remortgages at 75-85%, meaning you'll need enough equity in your home to cover both your current mortgage and the debts you want to consolidate.
Some lenders apply stricter LTV limits specifically for debt consolidation than they do for standard remortgages. A lender might offer a standard remortgage up to 90% LTV, for example, but cap debt consolidation at 75% or even 60% LTV. That means you may need more equity than you'd expect.
For example, if your property is worth £300,000 and you owe £200,000 on your mortgage, you have £100,000 in equity. If the lender caps debt consolidation at 75% LTV, the most you could borrow in total is £225,000, leaving £25,000 available to clear debts, not the full £100,000 of equity.
It's worth checking with your current lender whether they'll allow further borrowing for debt consolidation before you look elsewhere, as policies vary.
You'll need to provide more paperwork than for a standard remortgage, including proof of income, details of every debt you want to consolidate, your latest mortgage statement, a recent credit report and a list of your credit commitments. Lenders also want to understand exactly where the money is going, so be ready to explain how the debts built up over time and why consolidating makes financial sense for your situation.
Some lenders require the debts to be paid directly to your creditors by the solicitor at completion, rather than releasing the funds to you. This adds a small amount of complexity but protects everyone involved.
Remortgaging to consolidate debt tends to work best when you have at least 20-25% equity left in your home after adding the debt, your existing debts carry high interest rates, you have a stable income that comfortably supports the new mortgage payment, and you're not planning to move house in the next three to five years.
If you'd be left with only 15% equity after consolidating, or your existing debts are already on low rates, remortgaging might not be the right answer. Speak to a mortgage advisor to talk through whether it makes sense for you.
The number that catches people out most often isn't the debt itself, it's the affordability stress test. Lenders check whether you could still afford the mortgage at a higher rate than you'll actually pay, so even a healthy income can fail that test if your current debt repayments are heavy.
Lenders
We've helped many homeowners consolidate large debts, and certain types of lender consistently work better for these cases than others. The amount you can borrow depends on the lender's own criteria and your home's value, and this varies between providers.
Your options
Eligibility
Getting approved for a debt consolidation remortgage depends on several factors. Lenders will look at your outstanding debt, overall affordability, credit history, property value and the amount you want to borrow.
Lenders typically require enough equity in your home and a stable income before they'll consider debt consolidation. Your credit score also plays a significant role, as lenders use it to judge your financial reliability. If you have a poor credit history, a remortgage may be harder to secure, though some lenders specialise in customers with varied credit backgrounds.
The mortgage term and repayment structure you choose affect both your monthly outgoings and your overall eligibility. Extending your repayment period can lower your monthly payment, but it usually means paying more interest over the life of the mortgage. Lenders compare your proposed new payment against your current credit commitments when assessing your application.
For example, if your property is worth £350,000 and you want a total mortgage of £280,000 (80% LTV), you'd need to owe no more than £262,500 on your current mortgage to free up £17,500 for debt consolidation.
You'll also need documentation ready, including:
For debt consolidation above £30,000, lenders apply extra scrutiny:
Before you apply
Pay down your most visible debts first
Clearing even one credit card completely before you apply can improve both your credit file and your affordability calculation.
Avoid new credit for three to six months
Every new credit application leaves a footprint. Multiple recent applications make lenders cautious.
Check your credit report for errors
Applications are sometimes declined over outdated information that shouldn't still be on file, so it's worth checking before you apply.
Get your documents ready early
Having everything prepared speeds up the process and shows lenders you're organised.
The process
A debt consolidation remortgage typically takes four to eight weeks from application to completion, though complex cases can take longer depending on your lender, the complexity of your finances, and how quickly you provide the documents they ask for.
Step by step
Gather your documents
Collect statements for all the debts you want to consolidate, your last three months' bank statements, recent payslips or tax returns, your current mortgage statement, and a rough idea of your property's value. Having this ready can speed up the process by a week or two.
Application and decision in principle
Your broker submits your application with all the supporting documentation. Most lenders provide a decision in principle within 24-72 hours, confirming they're likely to lend, though this isn't a final approval. For large debt consolidation cases, lenders often ask for more detail at this stage about how the debts built up and how you plan to avoid running up new debt.
Valuation and underwriting
The lender arranges a valuation of your property, often a desktop valuation using data rather than a physical inspection, though larger amounts may need a full valuation. Underwriting is where the detailed checking happens, with particular attention paid to affordability now and under a stressed interest rate. This stage can take one to three weeks, and responding quickly to any queries speeds things up.
Mortgage offer and legal work
Once approved, you'll receive a formal mortgage offer. Your solicitor handles the legal work, including registering the new mortgage and arranging payoff of your existing one. For debt consolidation, the solicitor typically also arranges direct payment to your creditors at completion, so the funds don't pass through your hands.
Completion
On completion day, your new mortgage starts, your old mortgage is paid off, and your consolidated debts are cleared directly. You'll receive confirmation that the debts have been settled within a few days.
Case studies
These examples are based on cases we've helped with, though details have been changed to protect privacy.
James, 47, from Manchester, had built up £42,000 across five credit cards over eight years, some from home improvements and some from supporting his parents through illness. He was making substantial minimum payments each month but barely making a dent in the balances because of how high the interest rates were.
His property was worth £320,000 with an existing mortgage of £145,000 (45% LTV) and an income of £52,000 a year. His credit score was fair, with no missed payments but high credit utilisation.
With £175,000 of equity and a clean payment history, James qualified for a mainstream lender remortgage of £187,000 (58% LTV). Consolidating his credit card debt into a single mortgage payment reduced his combined monthly outgoings considerably compared to the minimum payments he'd been making. A clean payment history and a clear explanation for how the debt built up were the key factors that made his application straightforward.
Sarah and David, a couple from Bristol, had £68,000 in combined debts, including credit cards, a car loan and a personal loan. Their combined income was £78,000, but their monthly debt repayments left them with little spare capacity.
Their property was worth £425,000 with an existing mortgage of £215,000 (51% LTV). Consolidating the full £68,000 meant a new mortgage of £283,000 (67% LTV). Their debt-to-income ratio concerned some mainstream lenders, so we approached a building society that underwrites manually and could look at their full financial picture.
The consolidation freed up a substantial amount each month compared to their previous debt repayments, and they chose to use some of that extra headroom to overpay their new mortgage and clear the balance faster.
Michael, 52, from Leeds, had £35,000 of debt to consolidate plus a missed credit card payment from 18 months earlier. He'd already been declined by two mainstream lenders before coming to us.
His property was worth £280,000 with an existing mortgage of £120,000. We approached specialist lenders who consider applications with minor adverse credit, and one agreed to remortgage at 78% LTV.
His combined monthly debt payments reduced considerably compared to what he'd been paying before, even though his rate was higher than a mainstream deal would have offered. We agreed to review his mortgage once 24 months had passed since the missed payment, with a view to remortgaging onto a more competitive deal once his credit history had recovered further.
Watch out for
Securing debts against your property through remortgaging can put your home at risk if you miss payments, so it's worth understanding these common mistakes before you go ahead.
It's easy to focus on the monthly saving without calculating the total cost over the full term. Spreading debt over a longer mortgage term usually costs more in total interest than paying it off quickly at a high rate, but it depends on the numbers. If you were about to receive a windfall or could realistically clear the debt within a couple of years, consolidating it into your mortgage might end up costing more overall. Ask your advisor to show you both the monthly saving and the total cost over the full term before you decide.
Once credit cards are cleared, the temptation to use them again is strong. If you consolidate and then build up new unsecured debt on top of your larger mortgage, you end up worse off than when you started. Consider cutting up the cards after consolidation, or at least reducing your credit limits significantly, and build a budget that saves the difference rather than spending it.
People sometimes forget that their current mortgage deal has exit fees. Early repayment charges can run into thousands of pounds depending on your outstanding balance and how far through your current deal you are. Check your existing mortgage terms before you start, and if you have a significant amount of time left on a deal with high charges, it may be worth waiting or factoring the cost into your decision.
If your existing debt is already on a lower rate than the rate you'd pay on your mortgage, consolidating it could actually cost you more overall, not less. Only consolidate debts where the interest saving is genuinely significant, and keep low-rate debts separate.
Remortgaging isn't always the only option. If your current mortgage rate is excellent, you might be better off keeping it and taking a second charge loan for just the consolidation amount instead of remortgaging your whole mortgage. A good advisor will talk you through both options before you decide.
If you're struggling to keep up with your current payments, free and impartial guidance is available from MoneyHelper on 0800 138 7777.
Other options
Remortgaging isn't always the right answer for large debts. Here are other options worth discussing with an advisor.
If your debt is mainly on credit cards, moving the balance to a 0% balance transfer card can be a cost-effective short-term option. Be mindful of transfer fees and how long the 0% period lasts, as the rate typically increases once it ends.
Some lenders will let you borrow more on your existing mortgage without a full remortgage, known as a further advance.
Pros: a simpler process, often no valuation fee, and you keep your existing mortgage terms on your current borrowing.
Cons: the rate may not be competitive, you're limited to your current lender's criteria, and it may not offer enough for a large consolidation.
Worth considering if you need a smaller amount, your current lender is competitive, or you'd rather avoid a full remortgage.
For debts under roughly £25,000, a personal loan may be worth considering, though rates are typically higher than secured borrowing.
Pros: no risk to your property, a fixed term with a clear end date, and it's usually faster to arrange.
Cons: higher rates than secured lending, lower maximum loan amounts, and stricter credit requirements.
Worth considering if you have a strong credit history, your debts are under £25,000, and you'd rather not secure additional debt against your home.
A secured loan sits behind your existing mortgage rather than replacing it. If your current mortgage rate is excellent, you might be better off keeping it and taking a second charge loan just for the amount you need to consolidate.
Pros: you keep your existing mortgage, you only pay a different rate on the consolidation portion, and you don't need to remortgage your whole property.
Cons: typically a higher rate than a first charge mortgage, two separate monthly payments to manage, and additional legal costs.
Worth considering if you have significant time left on a competitive mortgage deal, you need a smaller amount for consolidation, or remortgaging would trigger a significant early repayment charge.
A mortgage advisor can talk you through all of these alternatives alongside remortgaging, comparing the risks, costs and practicalities of each so you can make an informed decision for your situation.
Expert view
The key question to consider before consolidating large debts is whether the underlying cause has been addressed. If the debt built up through a one-off event like divorce, illness, or supporting family, consolidation can make sense. If it's part of an ongoing pattern of spending, consolidating without changing that pattern just delays the problem. Before consolidating, it's worth building a budget that includes the new mortgage payment plus a contribution to an emergency fund, to help prevent debt building up again.
Organisations like StepChange and Citizens Advice see debt consolidation from a different angle. Their guidance is that consolidation should never be used to free up credit for more spending. If you consolidate and then start using cleared credit cards again, you can end up worse off than before. If you're struggling to meet your current payments, it's worth speaking to a free debt advice service before committing to a remortgage. They can help you work out whether consolidation is the right solution or whether other options might suit you better.
When someone comes to us with large debts, we don't just look at getting the application approved. We want to understand whether remortgaging is genuinely the best solution for their situation, whether they can comfortably afford the new payment, what happens if their circumstances change, and whether a different structure, such as keeping some debts separate, might suit them better. We only recommend debt consolidation when it genuinely makes sense for the person in front of us.
Consolidation only works long-term if the spending pattern behind the debt changes too. We always ask what happens to the cleared credit cards once the balance is gone, because that answer tells us a lot about whether remortgaging is the right move.
Common questions
Yes, provided you have sufficient equity and income. We regularly help customers consolidate debts of £50,000 to £100,000 or more. The key requirements are enough equity to stay within the lender's LTV limits for debt consolidation, typically 75-85%, and income that passes the affordability stress test at the higher mortgage amount.
There's no fixed maximum, but practical limits apply. Most lenders cap debt consolidation remortgages at 80-85% LTV. So if your property is worth £400,000, you could potentially borrow up to £340,000 in total. Subtract your existing mortgage, and the remainder is available for debt consolidation, assuming your income supports it.
It depends. Spreading debt over a longer mortgage term typically means paying more interest overall. But if your current debts are on very high interest rates, consolidating them into a mortgage at a much lower rate often costs less overall, even over a longer term. We always show customers both figures, the monthly saving and the total cost, so they can make an informed choice.
Timelines vary, but a debt consolidation remortgage typically takes 4 to 8 weeks from application to completion, depending on the lender, the valuation, and how quickly your documents are provided. A further advance from your existing lender can sometimes be quicker, while a second charge mortgage or a case with adverse credit may take longer.
Many lenders require direct debt repayment for consolidation remortgages, meaning the solicitor pays your creditors directly at completion rather than releasing the funds to you. This protects everyone involved and ensures the consolidation actually happens. Some lenders release the funds to you to repay your debts yourself, but may ask for evidence that you've done so within a set timeframe.
Yes, though you'll typically need two to three years of accounts or tax returns. Lenders average your income over this period and apply stricter affordability calculations. Building societies with manual underwriting are often more flexible for self-employed applicants.
A declined application isn't the end of the road. Common reasons include insufficient equity, failed affordability calculations, or adverse credit. Different lenders apply different criteria, and specialist lenders often approve applications that mainstream lenders decline. We specialise in helping customers who've been turned down elsewhere, and having a declined application on file doesn't prevent approval from a different lender.
This is a common question with no perfect answer. Mortgage rates are typically much lower than credit card and personal loan rates. Waiting for mortgage rates to fall while paying high interest on credit cards can cost you more overall, month after month. If you're paying a high rate on a significant amount of debt, it's worth speaking to an advisor about whether waiting makes sense for your circumstances.
Initially, your score may dip slightly because of the new mortgage application and reduced available credit. Most people see an improvement within three to six months, as closed credit card accounts with zero balances and reduced credit utilisation tend to help your score.
Yes, this is common. If you already have a second charge loan, you can roll it into your new first charge mortgage when you remortgage. This simplifies your payments and often reduces your overall rate, as second charge loans typically carry higher rates than first charge mortgages.
They serve different purposes. Remortgaging uses your home equity to clear debts at a lower interest rate while maintaining your credit score and avoiding negotiated settlements. Debt management plans typically involve negotiating reduced payments with creditors, which affects your credit file. They tend to suit situations where you don't have equity, or where debts are genuinely unaffordable even after consolidation. If you have sufficient equity and can afford the consolidated payment, remortgaging is usually the better option, but speak to a free debt advice service if you're unsure which route suits you.
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