Top 10 myths about remortgaging to clear credit cards(debunked)

Myth 1: “Mortgage rates are lower, so it’s automatically cheaper.”

Debunked: Lower rate doesn’t guarantee lower total cost. If the card debt is repaid over a much longer mortgage term, you can pay more interest overall even with a lower rate. MoneyHelper explicitly warns you may end up paying more overall if the borrowing is over a longer term.

Myth 2: “If my monthly payment drops, I’m saving money.”

Debunked: A lower monthly payment can be bought by stretching repayment longer — which can wipe out any “savings”. The Financial Ombudsman Service notes debt consolidation into a mortgage can cost more long term because interest is paid over longer periods.

Myth 3: “Clearing cards with a remortgage ‘fixes’ the debt problem.”

Debunked: Consolidation can fix structure, not behaviour. If spending habits or budgeting gaps remain, cards often creep back. MoneySavingExpert even flags the psychological trap: once debts are “inside the mortgage,” it can feel like they disappeared — making it easier to repeat.

Myth 4: “It’s just moving money around — no extra risk.”

Debunked: You’re often converting unsecured credit card debt into debt secured on your home. That’s a big risk upgrade. National Debtline warns that securing borrowing on your home can put it at risk if you can’t keep up payments.

Myth 5: “There won’t be many fees — it’s just a remortgage.”

Debunked: Fees can be the hidden boss level:

• Early repayment charges (if you leave your current deal early)
• Legal/valuation/admin costs

MoneyHelper specifically flags ERCs and costs when switching.

Myth 6: “Lenders only care that I’ve never missed a mortgage payment.”

Debunked: Affordability is about the whole system: income, outgoings, and resilience if rates rise. The FCA’s stress test rule (MCOB 11.6.18R) requires many lenders to consider the impact of likely future interest rate rises for at least 5 years (with exceptions).

Myth 7: “Remortgaging will instantly boost my credit score.”

Debunked: Paying down cards can help credit utilisation (often seen positively), but mortgage applications can involve credit searches, and lenders look at your broader credit history. Experian explains keeping utilisation lower is generally positive, and also explains credit searches and how they work.

Myth 8: “If I remortgage to clear cards, I don’t need 0% balance transfers.”

Debunked: Sometimes the cheapest solution is not moving debt into your mortgage at all. 0% balance transfer cards can give breathing space to repay card debt interest-free (often with a one-off fee). MoneySavingExpert’s balance transfer guidance focuses on choosing deals based on fee vs 0% period.

Myth 9: “Once I consolidate, I should close all my credit cards immediately.”

Debunked: Sometimes closing cards can reduce available credit (potentially increasing utilisation ratio). Sometimes keeping them open increases temptation. There’s no one-size answer — it depends on behaviour, limits, and whether the cards carry fees.

Myth 10: “It’s safe as long as I’m not borrowing more than I owe.”

Debunked: Even “same debt, new wrapper” can be unsafe if:

• the term becomes much longer (higher total interest)
• fees/ERCs are large
• you’ve converted unsecured debt into secured debt on your home

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The lead-friendly next step

If you’re considering remortgaging to clear credit cards, the fastest way to avoid expensive mistakes is a numbers-first check.