Thinking about remortgaging to pay off debts? It can work well for the right homeowner, because mortgages often have lower interest rates than credit cards and personal loans. But it also turns unsecured debt into secured debt against your home, so the risks and long-term costs need checking carefully.
You can remortgageDefinition A remortgage is when you switch your existing mor... More to pay off debts by borrowing more on your mortgage and using the extra funds to clear other credit (credit cards, loans, overdrafts). This can reduce monthly payments and simplify your finances, but it may increase the total interest paid over time and puts your home at risk if you fall behind.
If you want to know more about remortgaging, please read the related blogs here.
A remortgage is still a mortgage secured on your property. If you can’t keep up repayments, your home could be repossessed. The article is updated as of Jan 21, 2026.
Can I Remortgage to Pay Off Debt?
In many cases, yes—if you have enough equityThe difference between the value of the property and the amo... More, meet affordability checks, and your credit profile is acceptable.
A lot can change since you arranged your current mortgage:
- House prices may have increased, boosting your equity. The UK House Price Index shows annual UK house price growth of 2.5% in November 2025 (published 21 January 2026).
- If you’re on a repayment mortgage, your monthly payments reduce the balance over time (so you may owe less than when you started).
- That combination often improves your loan-to-value (LTV), which can unlock better rates.
- Market activity is still strong: the Bank of England reported remortgaging approvals (switching lender) of 36,600 in November 2025.
A remortgage means replacing your existing mortgage with a new one (same lender or a new lender) while staying in your current home.
What Is a Debt Consolidation Remortgage?
A debt consolidation remortgage is when you remortgage and increase the loan to release money, then use that money to clear other debts.
This can help because you:
- roll multiple payments into one monthly payment
- may reduce monthly outgoings if the interest rate is lower
- reduce missed-payment risk (fewer due dates to manage)
But remember: you are moving debts onto a mortgage term that could be 20–35 years, which can increase the total interest you pay overall.
How Much Can I Borrow? (LTV Rules You Must Check)
The maximum LTVThe maximum loan More for a remortgage varies by lender and your circumstances:
- Some lenders cap remortgages at 90% LTV for many cases.
- Others offer up to 95% LTV remortgage in certain scenarios (criteria apply).
So it’s not accurate to say “the maximum is 90%” for everyone—it depends on the lender, your property, income, and credit profile.
Key Things to Consider Before Remortgaging to Clear Debt
Your true cost (not just the monthly payment)
- Mortgage rate and product type (fixed / tracker)
- Fees: product fee, valuation fee, legal fees (some deals include incentives)
- Early repayment charges (ERCs) on your current mortgage
- Term extension (lower monthly cost can mean higher lifetime cost)
Affordability checks are stricter than many people expect
A lender will reassess:
- income and outgoings (including existing credit commitmentsAny existing financial commitments, such as credit card or l... More)
- credit history and recent missed payments
- overall debt-to-income and stress testing
Risk: your home is on the line
A remortgage is still a mortgage secured on your property. If you can’t keep up repayments, your home could be repossessed.
When a Remortgage to Pay Off Debt Can Make Sense
It’s often more suitable when:
- your credit card / loan rates are high
- your mortgage rate is competitive and the new deal still stacks up after fees
- you have strong payment history and stable income
- you’re consolidating to regain control, not to “create space” for more borrowing
When It Might Be the Wrong Move
Consider alternatives first if:
- you’d face heavy ERCs
- you’d need to extend the term significantly
- the debt is short-term and you could clear it quickly with budgeting or a cheaper unsecured option
- your spending habits are the real cause (consolidation won’t fix that without a plan)
FAQs: Remortgage to Pay Off Debt
What is debt consolidation?
Debt consolidationConsolidating multiple debts into one loan, often using the ... More means combining multiple debts into one (often to simplify payments and reduce monthly costs).
Should I consolidate my debt?
It depends. It can help cashflow, but you should compare the total repayable, fees, and the risk of securing debts against your home.
Can I borrow more on my mortgage to pay off debt?
Often yes, if you have enough equity and pass affordability. Maximum LTV depends on lender criteria (commonly 90% in many cases, sometimes 95% with specific lenders/products).
Should I use my mortgage to pay off other debts?
Only if the numbers work and you have a plan to avoid rebuilding debt. You could pay more long-term if you stretch repayments over decades.
Is it better to pay off debt or keep monthly payments?
If consolidation reduces interest and you keep the term sensible, you may save money. But if you extend the term a lot, it can cost more overall even if the monthly payment drops.
Can I remortgage to clear credit card debt?
Yes, but it’s important to understand you’re moving unsecured credit card borrowing onto a secured loan. If you miss payments, the consequences are more serious.
Damian Youell
Damian is the founder of NeedingAdvice.co.uk and the firm’s Senior Mortgage Broker. He specialises in helping clients across the UK with straightforward and complex mortgage cases, including self-employed applications, adverse credit, buy-to-let, remortgages and first-time buyer mortgages.
Alongside mortgage advice, Damian also supports business owners with protection planning, including Relevant Life Policies, Shareholder Protection and Keyperson Cover.
Read independent client feedback and verified reviews for Damian and the NeedingAdvice.co.uk team below.
Debt Consolidation Remortgage vs a Personal Loan: What Actually Changes
A common misconception is that a debt consolidation remortgage is simply “cheaper borrowing.” The real difference is where the debt sits. An unsecured personal loanA personal loan is an unsecured loan borrowed from a bank, b... or credit card balance is unsecured against your home — if repayments become unaffordable, the lender cannot repossess your property. Once that same balance is added to your mortgage, it becomes secured debt repaid over the remaining mortgage term, often 20-25 years, which means the total interest paid over the life of the debt can end up higher than a shorter unsecured term, even though the monthly repayment looks smaller.
Lenders also reassess affordability on the new, larger mortgage balance — not your original one. The stress test is applied to the full consolidated figure, so if your income hasn’t changed but your total borrowing has increased significantly, some lenders may offer a lower loan-to-value than you expect, or decline the additional borrowingWhat is Additional Borrowing? A Quick Overview When you take... More element outright while still allowing a standard remortgage of the existing balance. This is why a broker will usually check affordability on the consolidated figure before submitting an application, rather than assuming approval because the current mortgage is being serviced comfortably.
If you’re weighing this decision, our team at Needing Advice can talk through whether consolidating is the right move for your specific balances and mortgage term, without any obligation to proceed.