CHFinance

CHFinance

Advising & Protecting your Future!

Debt Consolidation Guide

Debt Consolidation Remortgage:How It Works and Who It's For

A clear, adviser-led walkthrough of how remortgaging can consolidate debt, reduce stress, and help you move forward with confidence.

15 May 2024•Mortgages
Debt consolidation remortgage concept

Featured insight

Replace multiple repayments with a single, structured plan.

Many people find themselves juggling multiple monthly payments for various debts like credit cards, personal loans, or car financing. This can be stressful and often feels like an uphill battle, especially if those debts carry high interest rates. A debt consolidation remortgage can be a powerful tool to streamline your finances and potentially lower your overall monthly outgoings. But how exactly does it work, and is it the right choice for you? Let's dive in.

What is a Debt Consolidation Remortgage?

In simple terms, a debt consolidation remortgage involves taking out a new mortgage on your home that is larger than your existing one. This extra capital is then used to pay off your other outstanding debts in full. Instead of having multiple creditors with different payment dates and interest rates, you are left with just one monthly payment: your mortgage.

How Does it Work?

1

Assessment

We assess your financial situation, including your current mortgage, debts, and credit history.

2

Valuation

Your home is valued to determine the available equity (market value minus current mortgage).

3

Application

You apply for a new mortgage covering your existing balance plus the debt you wish to consolidate.

4

Repayment

Funds pay off high-interest debts. You're left with one single, potentially lower, monthly payment.

Who is it For?

A debt consolidation remortgage might be a suitable option if you:

  • Are struggling to manage multiple debt repayments each month.
  • Are paying high interest rates on credit cards or personal loans.
  • Have sufficient equity in your home to cover the debts you want to consolidate.
  • Want to simplify your finances into one clear, manageable monthly payment.
  • Can comfortably afford the new, potentially higher, mortgage payment over a longer term.

The Benefits of Consolidating with CHFinance

  • ✓Expert Advice: Our CeMAP qualified advisers will carefully assess your individual circumstances and explain your options, ensuring you make an informed decision.
  • ✓Broker-Only Deals: We have access to a wide panel of lenders, including specialist providers and products not always available directly to the public.
  • ✓We Do the Heavy Lifting: We handle the paperwork and conversations with lenders, saving you time and stress.
  • ✓Certainty & Transparency: We provide clear, honest explanations so you understand every option and any associated fees before you commit.

Privacy, cookies, and consent

We use cookies to improve your experience and understand site usage. Read our Cookies Policy for details, and manage your consent at any time using the cookie banner’s Manage option. Our Privacy Policy explains how we handle personal data.

Ready for next steps?

Start a quick quote and we will show you the options most likely to fit your situation.

Get my quote

Important consideration

If you consolidate existing borrowing, you may extend the term of your debt and increase the total amount you repay.

MoneyHelper

You may want to explore alternatives that do not use your home as security. It is important to consider the risks carefully and seek free, independent guidance before taking any action regarding your debt or mortgage, for example from MoneyHelper. If you click this external link to MoneyHelper you will leave the website of CHFinance.

FIBA

CH Finance UK Limited is a member of the Financial Intermediary & Broker Association (FIBA), and uses the FIBA logo under licence. FIBA Ref FIB41132.

Copyright © 2026 CHFinance

ALWAYS SEEK ADVICE FROM A QUALIFIED MORTGAGE PROFESSIONAL.

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.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING, YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERM OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

CHFinance is a trading name of CH Finance (UK) Limited.Registered address: CH Finance, 2nd Floor Oakhill Court, 171 Bury New Road, Prestwich, Manchester, M25 9ND.

CH Finance (UK) Limited is a limited company registered in England and Wales, Registration number 10924999. Licensed by the Information Commissioner's Office under the Data Protection Act. CH Finance (UK) Limited is an Appointed Representative of Clarke Hendrik Group Ltd, which is Authorised and Regulated by the Financial Conduct Authority, Firm Registration Number 982714. CH Finance (UK) Limited FCA Registration Number: 788035.

CH Finance (UK) Limited will call you to complete an initial basic fact-find and, based on your criteria, will introduce you to an FCA-regulated broker who will provide you with advice in the area you need. Should you proceed with any solution, CH Finance (UK) Limited will receive a commission from the FCA-regulated broker upon the successful completion of your case.

Calls to and from CH Finance (UK) Limited may be monitored and recorded for record-keeping, supervisory, training, and quality assurance purposes.

We will discuss our fees with you. Our fees are only payable on the completion of any mortgage. We will discuss this with you clearly before proceeding and confirm in writing what our fees will be.

Representative example: A mortgage of £102,495 payable over 25 years, initially on a fixed rate of 5.30% for 5 years and then on a variable rate of 6.74% for the remaining term, would require 60 monthly payments of £617.23 followed by 240 payments of £693.06; the total amount payable would be £185,169, made up of the loan amount, interest and fees of £2,495 (including a £1,495 broker fee – Example Only). The overall cost for comparison is 6.6% APRC representative.If you proceed with a mortgage arranged by CHFinance, a trading name of CH Finance (UK) Limited, a broker fee is payable on completion and will be confirmed before you proceed.

The guidance and/or advice on this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK. A summary of our internal complaints handling procedures for the reasonable and prompt handling of complaints is available on request and, if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4 567.