Cashback Remortgages · Remortgaging
Debt Consolidation by Remortgaging: The Risks
Consolidating other debts into a remortgage can reduce monthly outgoings, but it moves unsecured debt onto your home and often over a much longer term. The risks deserve careful thought.
Understand the trade-off
A lower monthly payment can cost far more in total interest over the mortgage term, and the debt becomes secured on your home, so your home is at risk if you cannot pay.
Consolidation is not automatically the cheapest option even when the rate looks lower.
Get advice first
Because of the risks, consolidation should be considered carefully with advice. Explore whether managing the debts separately, or a shorter arrangement, would be better for you.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.