Remortgages are often used as a way to consolidate numerous unsecured debts.
The general idea is that you would apply for a new mortgage and hopefully increase the size of your re mortgage to release cash from the property.
This cash is then used to repay numerous other, normally unsecured debts so that all you have to then pay is your one mortgage payment.
However, there are down sides to this, not least of which, an unaffordable mortgage could mean losing your home. You must give very serious consideration to using your property as a way of resolving debt.
- Consolidate your debtPay just your mortgage
- Pay less monthlyPotential for reduced debt repayment
- Lower interestCan be much lower than unsecured debt