One payment instead of five. Use your home's equity to consolidate debt.
Multiple debts piling up? A debt consolidation mortgage or secured loan can roll credit cards, personal loans, and store cards into a single, lower monthly payment. CCJs, defaults, missed payments — specialist lenders consider it all. Free chat about whether it's right for you.
What is a debt consolidation mortgage?
A debt consolidation mortgage (or secured loan) uses the equity in your home to pay off other debts — credit cards, personal loans, store cards, overdrafts. Instead of juggling multiple monthly payments at different interest rates, you have one payment to one lender, usually at a lower rate than unsecured credit charges.
It's a regulated mortgage product, not a debt-management plan or IVA. Two routes:
Remortgage route
- Replaces your existing mortgage with a larger one
- Borrow extra to clear unsecured debts
- One single monthly payment
- Best if current mortgage rate is poor or fix is ending
- Typically 4–8 weeks to complete
Secured loan route
- Second-charge loan sits behind existing mortgage
- Pays off unsecured debts directly
- Two payments — existing mortgage + new loan
- Best if current mortgage rate is excellent
- Often 2–4 weeks to complete (faster)
When debt consolidation often makes sense
Common reasons homeowners consolidate
Multiple credit cards near their limit with high interest rates. Personal loans, store cards, and overdrafts all costing different rates. Monthly outgoings feel unmanageable even though you're earning enough. Missed payments starting to accumulate — consolidation can stop the spiral. You want one payment with a clear payoff schedule instead of five different bills.
It's not always the right move. Short-term debt at 0% interest probably doesn't belong on a mortgage. We'll be honest about whether consolidation actually saves you money or just stretches the debt over a longer term. Sometimes the maths works beautifully. Sometimes it doesn't.
What you can typically consolidate
Credit cards
Rolling 19-29% APR credit card debt into a 6-9% secured loan or mortgage rate is often the biggest single win.
Personal loans
Existing unsecured personal loans, including those from doorstep lenders or short-term high-cost providers.
Store cards & finance
Furniture finance, store credit, BNPL arrangements that have rolled into ongoing debt.
Overdrafts
Persistent overdraft balances at expensive arranged or unarranged rates.
Existing CCJs & defaults
Some lenders allow paying off existing CCJs or defaults as part of the consolidation, satisfying them in the process.
Car finance (PCP/HP)
Sometimes — depends on the deal structure and lender. Some lenders see this as displacing rather than consolidating.
What you can't typically consolidate: 0% interest debts (no point paying mortgage interest on them), debts you've fallen into formal default arrangements on (DMP, IVA), or debts where the lender has restrictions.
The honest pros and cons
We'd rather you make an informed decision than a rushed one. Here's the real picture, no spin:
✓ The pros
Lower monthly payments — often significantly. Single payment easier to manage. Lower interest rate on the consolidated debt vs credit cards. Stops missed payments spiralling further. Improves monthly cash flow — useful if income has dropped.
✗ The cons
More interest paid overall — spreading 5-year debts over 25 years means more total interest, even at a lower rate. Your home is at risk — unsecured debt becomes secured against your property. Restarts the debt clock — psychologically and financially. Doesn't fix spending habits — without changes, the cycle can repeat.
If your situation suggests consolidation will just stretch debt without solving anything, we'll tell you. Sometimes the right answer is to talk to StepChange or Citizens Advice for free debt help first.
Can I consolidate with bad credit?
Yes — and this is where specialist brokers earn their keep. Mainstream lenders typically decline debt consolidation when the applicant has CCJs, defaults, or recent missed payments. Specialist lenders take a different view: they recognise that someone consolidating debt is often improving their financial position, not worsening it.
What lenders look at on adverse-credit consolidation cases
Equity in your home — typically need 15-25% minimum. How recent the adverse credit is — older issues are easier to place. Whether issues are satisfied — paid CCJs and defaults open more doors. Your reason for consolidating — lenders prefer "I want one payment" over "I'm in arrears". Affordability — the new payment must be demonstrably manageable.
If you've got CCJs, defaults, or missed payments on your file and want to consolidate, that's exactly what we specialise in. Read more on CCJs & defaults.
How it works — three simple steps
Free phone chat
Tell Chris what debts you're looking to consolidate, your existing mortgage, and your credit situation. Honest answer about whether it's worth doing.
Compare both routes
Remortgage vs secured loan — we'll show you the actual numbers from real lenders, with your specific credit profile factored in.
Hand-held to completion
We package and submit. Funds clear your existing debts. You're left with one monthly payment instead of five.
Try our secured loan calculator
Get a starting estimate of consolidation monthly payments before we even speak.
Open secured loan calculator →
Note: indicative figures only. Actual rates depend on your credit profile and equity.
Debt consolidation FAQs
Will consolidating my debts hurt my credit score?
How much can I borrow for debt consolidation?
Is debt consolidation a form of debt advice?
What if I have a great mortgage rate already?
Can I consolidate if I'm self-employed?
What if I've already been turned down for consolidation?
How quickly can the funds clear my existing debts?
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. Consolidating debt may reduce your monthly outgoings but you may pay more in interest over the longer term.
Related guides & pages
Ready to simplify your monthly outgoings?
One call. Honest answer about whether consolidation actually fits your situation — or whether you'd be better off elsewhere.
Call Chris on 07359 911 696