If you’re looking to reduce your monthly outgoings or bring your borrowing under control, remortgaging to pay off debt might be worth considering.
It’s not the right fit for everyone, but in the right circumstances, it can make things more manageable.
This approach works by increasing your mortgage balance to cover other debts, such as credit cards, loans, or overdrafts. Instead of making several payments each month, everything is rolled into one.
It’s a big decision, so it’s important to understand how it works and what it could mean for your home and finances long term.
What Debt Consolidation Means
Debt consolidation involves taking out additional borrowing through your mortgage and using it to pay off existing debts.
You’ll need enough equity in your property to do this. That’s the gap between what your home’s worth and how much you currently owe.
There are a few different ways this can be arranged:
- Remortgaging to a new lender with a larger loan
- Applying for a further advance with your current lender
- Taking out a separate secured loan on top of your mortgage
Each option has pros and cons depending on your income, credit history, and how much you’re looking to borrow.
If you’re thinking about debt consolidation in Grimsby, our mortgage advisors will explain which route might suit you best.
Can You Remortgage If You’re Already in Debt?
Possibly. It depends on a few things. Lenders will look at how much equity you have, whether your income can support the new mortgage, and how you’ve managed your debts up to now.
If your credit is in better shape than it used to be, and your repayments have been on track, some lenders will be open to offering you a new deal.
If you’re struggling to meet repayments, it might be harder, though there may still be options depending on your situation.
Debt consolidation tends to be treated more cautiously than other borrowing purposes, like home improvements, so the amount you can release might be lower.
If you’re looking for a remortgage in Grimsby and want to explore this route, we’ll help you understand whether it’s realistic and what your lender options might look like.
Things to Be Aware Of
It’s not just about swapping one loan for another. When you add debts to your mortgage, they become secured against your home.
That means if things go wrong and you can’t keep up with repayments, there’s a risk to your property. There’s also the question of how long you’ll be repaying the debt.
While your monthly outgoings may go down, you could end up paying more interest overall if the mortgage term is longer than the original debts.
That’s why it’s important to look at the bigger picture. If this is a short-term fix for longer-term problems, it might not be the right answer.
If your income is stable and you’re looking to simplify your finances, it could be worth exploring properly.
Speak to Someone About Your Options
If you’re thinking about using your mortgage to clear debts, we’ll help you look at the full picture before making any decisions.
Our mortgage advisors regularly help customers explore options for debt consolidation and will let you know if this type of remortgage in Grimsby is a good fit, or if it might be better to look at something else.
We’ll talk through your income, current borrowing, and what lenders are likely to offer, then handle everything from the application to the lender checks and paperwork.
No pressure, no assumptions, just clear advice based on your situation.
Date Last Edited: October 27, 2025
