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Appointed Representative of The Right Mortgage Network (FCA No. 1004260). Company No. 15189091. Registered in England and Wales.
Mortgages · Investment and borrowing
Debt Consolidation Mortgages
“One monthly payment. Actually manageable.”
If you’re juggling multiple debts at high interest rates, consolidating them into your mortgage can reduce your monthly outgoings. But it’s a decision that needs careful thought and honest advice.
FCA regulated · whole of market · 90+ lenders · 5 star reviews
Quick answer
Debt consolidation means borrowing more against your home to pay off other debts such as credit cards and loans. Monthly payments often fall because mortgage rates are lower. The main thing to know is that you may pay far more interest in total, and debts that were unsecured become secured against your home.
Equity needed
Enough to clear the debts within lender limits
How lenders assess you
Affordability after debts are cleared
When to start
Before payments fall behind
Main thing to watch
Total interest and your home as security
How debt is added to a mortgage
We raise extra borrowing through a remortgage, further advance or second charge loan, and the funds are used to repay the other debts, often directly.
Your monthly outgoings may drop, but a credit card cleared over 25 years instead of 3 can cost several times more in interest.
Lenders want to see the debts genuinely repaid and not built up again.
Alternatives to securing debts against your home
If the problem is short term cash flow, a balance transfer card or an unsecured loan may cost less and keeps your home out of it.
If you’re struggling to keep up, free debt advice from MoneyHelper or StepChange can help, and we’ll always point you there first if it’s the better route.
Eligibility and what lenders assess
Who may qualify
Homeowners with enough equity and affordable payments after consolidation.
Equity and LTV
Lenders often cap debt consolidation at a lower LTV.
Income and affordability
Assessed on the new, larger mortgage.
Credit history
Recent arrears or defaults narrow options.
Purpose
Lenders check the debts and usually want them repaid directly.
Common reasons for decline
High existing credit use, recent missed payments, or too little equity.
What happens from first call to completion
1
Review your circumstances
A proper conversation about your income, commitments, plans and timescales before anything else.
2
Check affordability and criteria
We check what lenders will realistically offer and whose criteria you fit, before any credit search.
3
Compare suitable options
We compare the market on total cost, not just the headline rate, and explain the trade offs.
4
Prepare and submit the application
We package your documents so the underwriter has what they need first time.
5
Manage valuation and underwriting
We chase the lender, valuer and solicitor and deal with any questions that come up.
6
Receive your offer and complete
Once the offer is issued we keep things moving through to completion day.
Costs, risks and when it may not be suitable
Being upfront about this is part of doing it properly.
Costs to budget for
- Product and arrangement fees
- Valuation and legal costs
- Early repayment charges if you leave a deal early
- The total cost of borrowing over the full term, not just the initial rate
- A longer term lowers monthly payments but increases the total interest you pay
Risks to weigh up
- Unsecured debts become secured against your home
- Spreading debt over a long term can greatly increase total interest
- It only helps if new debt isn’t built up again
- Your home may be repossessed if you do not keep up repayments on your mortgage
When it may not be suitable
- If debts could be cleared within a few years, consolidating may cost more
- If you’re already behind on payments, get free debt advice first
- If spending habits haven’t changed, the debts can return on top of a bigger mortgage
What you will need
The exact list depends on your lender, but this is what to start gathering.
Photo ID and proof of address
Bank statements (usually 3 months)
Details of credit commitments
Statements for every debt
Existing mortgage statement
Payslips or accounts
Budget of monthly outgoings
How MBNM helps
- Assess your circumstances properly, not just your salary
- Compare suitable lenders and products across the whole market
- Check criteria before an application goes anywhere near a lender
- Explain the total costs and trade offs in plain English
- Manage the application and chase the people who need chasing
- Support you all the way through to completion
What it costs
Your first chat is free. If we can help, we will explain any fees before you decide whether to proceed. There are no hidden fees, and we will not move forward until you have agreed them.
Debt Consolidation FAQs
Is debt consolidation a good idea?
What debts can I consolidate?
What are the risks?
Will it affect my credit score?
Can I consolidate if I’ve missed payments?
Do I have to close the cards?
Want an honest view?
We’ll model the monthly saving and the total cost side by side, and tell you straight if another option is better.
Your first conversation is free and there's no obligation. If we can help, we'll explain any fees before you decide whether to go ahead.
Your home may be repossessed if you do not keep up repayments on your mortgage.