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Re-mortgaging can be an effective way to pay off debt.

Re-mortgaging is simply changing from your existing mortgage to a new one. This could be with your current lender or with a new lender, but you will need expert guidance from a qualified mortgage adviser.

Can I re-mortgage to pay off debt

The answer is yes

Can I re-mortgage to pay off debt?

You can re-mortgage your house to pay off your debts.  This can be done in two ways:

  • Re-mortgaging can release equity in your property (in the form of a lump sum), which you can then use to pay off your other debts
  • Re-mortgaging could reduce your monthly mortgage payments, leaving you with money to pay off your other debts

We will advise and help you at every stage

How can TC Debt Solutions help me with re-mortgaging?

If you are looking at re-mortgaging options and your wider financial options, contact the team at TC Debt Solutions for a confidential chat to discuss the pros of re-mortgaging. And if this is something you'd like to consider, we can point you in the direction of a qualified mortgage adviser.

There are pros and cons to all debt solutions and it's essential you are aware of these.

Quick Summary

The advantages & disadvantages of re-mortgaging


Re-mortgaging can be used for a range of purposes:

  • To save money
  • To get the best mortgage deal
  • To get a better rate
  • To pay down a mortgage more quickly
  • To reduce your secured homeowner loan and help with secured debt
  • To raise money more cheaply
  • To pay off unsecured debts


There are some circumstances where re-mortgaging is not a good option:

  • You may not make any significant savings (if you have only a small outstanding loan or little equity in your property)
  • You may be hit by early repayment charges that will cancel out any savings
  • Your changed circumstances may prevent you from accessing other good mortgage deals
  • Your credit problems may also prevent you from accessing other mortgage deals
  • Including unsecured debt in a remortgage will turn it into a secured debt and potentially increase the term
Right from day one, you kept me informed of everything and any question I had, of which they were many, was answered promptly with the indication that it was no trouble at all to provide an answer.
What should I consider before I re-mortgage

Fees, Interest & term period need to be considered

What should I consider before I re-mortgage to pay off debt?

You will need to consider a number of issues if you are thinking about re-mortgaging.  We can guide and advise you as you think about the following:

  • The term of the mortgage
  • The monthly payment
  • The interest rate that will apply
  • The best type of mortgage for your circumstances (fixed or variable)
  • Fees that may be applicable
  • How re-mortgaging will make a material difference to your financial present and future

We are here to help

Common questions on re-mortgaging

What do mortgage lenders look for?

If you are looking to re-mortgage to pay off debt, mortgage lenders will look at three principal things:

  • Your credit file
  • The value of your house
  • The amount you want to borrow

Can you re-mortgage with debt?

It is possible to re-mortgage with debt, but having debts or arrears will have a negative effect on your credit rating. This will have an effect on the offers that you will receive and you will be unlikely to get a good mortgage offer.

You should also remember that, if you are currently on a mortgage deal, there could very well be a redemption fee to pay too.

Can I re-mortgage to pay off debt?

Re-mortgaging can also be a good way of raising more money on a low rate – to pay off other unsecured debts.

However, you do need to check that you are taking account of all fees to be sure that there are no hidden costs to the deal – and that there are no better and cheaper ways of borrowing the money you require.

Fees can eat up any gains

Re-mortgaging may not be the best solution

Re-mortgaging is probably not worth it if you have only small outstanding loan.  You are unlikely to make much of a saving, or one that will drive down your secured debt loan to any great extent as fees can eat up any gains.

You should also look at early repayment charges, which could make it prohibitive to move in certain circumstances, for example, if you are changing mortgages well ahead of the end of an incentive deal that you are currently on.

If the value of your home has depreciated, then you are not going to be able to realise any gains.  Similarly, if your circumstances are now different from when you took out your mortgage, you may not be able to benefit from re-mortgaging as you may not meet lending criteria.

Credit problems will also rule out a potentially lucrative mortgage switch.

Prudent financial planning

Re-mortgaging can make good sense

Re-mortgaging to save money is a really good reason.  You could save hundreds of pounds a month by switching from a variable to a low fixed-rate deal that pegs your payments for a number of years, giving you extra money to pay off other debts.

That really makes good sense and is prudent financial planning.

In many cases, it is simply remiss not to re-mortgage.  You might for example be on a favourable fixed rate mortgage that is due to end.  When that happens lenders simply put you back on to their variable rate, which will almost inevitably be much more expensive and less competitive than what is available elsewhere.

You need to shop around, and we can advise you in this process. If the market price or value of your home has risen a lot (against your original borrowing) then this can potentially unlock some really good deals for you.

You may also want to re-mortgage your house if you suddenly have a windfall like an increase in salary or you receive an inheritance.

In this situation, and depending on your lender, you may have to re-mortgage if you want to pay more to pay down your mortgage earlier.

It is important to be aware of any early repayment fees that some lenders impose.  These need to be weighed up against the savings in any new mortgage deal, and we can keep you right on this.

This is really re-mortgaging your debt in a positive way as you are reducing your loan.

Free & Confidential Consultation


If you are considering re-mortgage to pay off debt or would like to explore your other options, complete our short form and we will contact you.

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