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Remortgaging to pay off debt

If you’re a homeowner remortgaging can, if the right mortgage is found, improve your situation.

A remortgage is when you replace your existing mortgage with a new one. It can mean changing products with your existing lender, or switching to another mortgage lender completely. You should always get expert debt advice before going ahead with a remortgage.

There are two main ways that remortgaging can improve your situation:

  • You can release the equity that’s in your property in a lump sum and use this to repay your other debts
  • It might reduce your monthly mortgage payment, freeing up money to repay your other debts

How remortgaging works

A mortgage lender will base your application on a number of things including:

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

If you’re in arrears with your mortgage or any other debts, your credit rating will have been affected and it’s unlikely that you’ll get a good mortgage offer.

If you’re currently on a mortgage deal that hasn’t ended, for example a fixed term for three years, there'll probably be an early redemption fee to pay if you remortgage.

Is remortgaging right for you?

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Things to think about before remortgaging

Remortgaging is something you need to consider carefully. It’s important to get as much information as possible before you make a decision. Some areas to consider are:

  • What will the interest rate be?
  • What term do I want?
  • What will the new monthly payment be?
  • What type of mortgage is best for me, fixed or variable?
  • How much am I going to pay in fees for a remortgage?
  • How will this improve my situation?

If you’re considering a remortgage, before you do anything else, you should speak to us. We’ll be able to assess your situation and see if there are any other options available to help you deal with your debts.

You can use our online debt advice tool, Debt Remedy, or call our Helpline (free from all mobiles and landlines).

Remortgaging FAQs

Can you help me remortgage?

Yes. If you complete an appointment with us, and remortgaging is an option for you, we can give you details of a mortgage broker who can help you find a new mortgage completely free of charge.

Will I be able to remortgage if I'm in debt?

If you've missed payments to any of your debts it's likely that your credit file will be affected. This may mean that you find it hard to get a new mortgage with a good rate.