Can I Remortgage To Clear Debt?

Remortgage for debt consolidation

While mortgages will offer far lower interest rates than credit cards and an improvement on personal loan rates, that doesn’t mean that remortgaging for debt consolidation will save you money.

So in some cases, a credit card will be better at handling your debt than a remortgage deal.

Is it a good idea to remortgage to pay off debt?

When remortgaging to pay off debts is rarely a good idea

But there are downsides as you will be adding debt to your mortgage. There may also be product, legal and valuation fees to pay. Currently, if you have credit cards built up or a loan to repay, they are most likely unsecured.5 May 2018

Can you remortgage for debt consolidation?

Remortgage for debt consolidation

By remortgaging your property, you can release the equity you own as a lump sum; which can then be used to clear other debts or ease regular bills such as credit card repayments.

Can I remortgage with credit card debt?

Consolidating credit card debt by remortgaging

If you have a number of credit cards or loans, consolidation may be a good option to help simplify or lower your monthly payments – but it will not erase your debt.6 Feb 2019

Can you refinance to pay off debt?

When you perform a cash-out refinance, you’re increasing your mortgage balance by the amount of credit card debt you’re paying off. The shorter term would lower your mortgage rate even further and save you a lot of money in interest. However, it could lead to a higher monthly mortgage payment.14 Apr 2016