Remortgage to reduce outgoings

Consolidate debts into one, single monthly payment
Take control of store cards, credit cards and other debts
Potentially benefit from the drop in interest rates
Simplify your finances

How can a remortgage help you?

Remortgaging simply means taking out a new mortgage and using it to pay off your existing one, essentially moving your mortgage into a new loan. This can reduce your monthly outgoings, and could save you money in the long term too.

You could really reduce the cost of your mortgage payments by remortgaging at a lower interest rate or over a longer term. Or you could use the equity in your home to pay off your other debts, reducing your overall monthly outgoings - this is known as a debt consolidation remortgage.

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Remortgage to reduce your monthly payments

If you're finding it hard to keep up with your mortgage payments, your mortgage isn't necessarily the problem. It could be because your other debts are taking up too much of your monthly income, or that having lots of different payments on different dates is making them hard to manage.

If you have loans, credit cards or store cards with different companies you may be paying out more than you need to. By consolidating all these unsecured debts you can make them much simpler to pay off and even reduce your monthly payments.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Loans subject to status and where mortgages are involved, subject also to type and value of property. For mortgages, an arrangement fee of 5% of the cash raised, subject to a minimum fee of £495 and a maximum fee of £1,495, is payable on completion. For secured loans a 10% broker fee is payable on completion. [The actual rate available will depend upon your circumstances. Ask for a personalised illustration.] DEBT CONSOLIDATION MAY INCREASE THE AMOUNT TO BE REPAID IN THE LONG TERM. Calls may be recorded for training and quality purposes and are usually free from UK landlines. Call charges from mobiles may vary.

The overall cost for comparison is 4.9% APR (typical)
66% of our customers get this rate or lower.

Remortgage FAQs:

What is a remortgage?

Remortgaging just means taking out a new mortgage and using it to pay off the old mortgage. If you remortgage, your deal with your old mortgage provider will come to an end and you'll start making payments to your new mortgage provider.

Can remortgaging reduce my monthly mortgage payments?

Yes. Remortgaging gives you the opportunity to reassess your finances and figure out how much you can really afford to pay towards the mortgage every month. When you take out a new mortgage, you may be able to take advantage of a lower interest rate or reduce the size of your monthly payments by arranging to repay it over a longer period.

Even though extending the term can reduce the size of your monthly payments, it can also increase the overall amount you'll end up paying back, as your mortgage debt will spend longer accruing interest.

What exactly is a 'debt consolidation' remortgage?

A debt consolidation remortgage is a new mortgage that's large enough to pay off your old mortgage and other secured or unsecured debts. This means you'd have a larger mortgage debt to pay off - but no unsecured debts.

This can really simplify your finances. Instead of making multiple repayments every month (your mortgage payments and your unsecured debt payments), you'd make just one - your mortgage payment.

Can remortgaging reduce the cost of my unsecured debts?

A debt consolidation remortgage can reduce the rate of interest you pay: unsecured debts tend to come with much higher interest rates than mortgages, which are one of the lowest-interest forms of debt available.

However, repaying any debt more slowly (as would probably be the case if you incorporated it in your mortgage) is likely to cost you more in the long run, as this will mean it's accruing interest for longer.

Are there any drawbacks to remortgaging?

Arranging for your new mortgage to be repaid over a longer term can reduce your monthly payments, but it will mean you spend more years making mortgage payments.

If you take out a new mortgage that's larger than the last one, you'll be reducing your equity - the part of your property's value that you owe nothing on.

If you use a remortgage for debt consolidation it is important that you can comfortably afford the monthly payments as once you have added unsecured debts to your mortgage, the risks associated with not keeping up payments are much greater.

It could be that remortgaging isn't the right way for you to tackle your financial issues. It makes sense to talk to a professional adviser and find out if you'd be better off with a different debt solution, such as a debt management programme.

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