Debt consolidation can help restructure your existing credit

Debt consolidation loans are usually recommended in cases of moderate debt problem where there is equity in your home, or where you can afford to make equal or higher monthly debt payments than you are currently making. Refinancing refers to consolidating debts by taking out a larger loan (usually over a longer repayment term and at a lower interest rate) to pay off smaller debts.

• Secured Loans - Homeowners are able to borrow larger amounts by securing the loan against your property. To find out more visit our secured loans section.

• Unsecured Loans - If you don't own your home and need to borrow up to £25,000 we have unsecured loans available with cheap rates to help reduce your monthly payments. For further information visit our unsecured loans section.

Debt consolidation calculator

If you would like to work out how much you could save by consolidating all of your existing debts into one affordable low cost loan, use our free online debt consolidation calculator.

Remortgaging for debt consolidation

Remortgaging is a route out of debt involving releasing equity in the home. The "best advice" approach given by Online Mortgages UK means that they’ll only recommend a remortgage as a route to clear your finances if your situation means that this is the best option for you. Usually, a remortgage is recommended where debt is relatively small and you have equity in your home.

What is a remortgage?

A remortgage is exactly as the name suggests, taking out a new mortgage and repaying your existing one in order to realise equity and sometimes to reduce monthly payments.

This equity can then be used to pay off all or part of your debt. If your remortgage leads to a lower monthly payment it may also mean that the remaining debt is easier to budget for.

What factors need to be considered when planning to remortgage?

The remortgage market, just like the new mortgage market, is filled with complexities if you don’t have a thorough understanding of how a remortgage works. We have this thorough understanding, and can talk you through the remortgage selection process and advise on the most suitable deal considering your circumstances.

When selecting a remortgage, these factors must be taken into account:

• Possible charges for leaving your current mortgage provider. You may need to pay a ‘Redemption Penalty’ to leave your current lender if you have agreed to stay with your current mortgage for an agreed number of years.

• Charges incurred in moving to the new mortgage provider. Your new mortgage provider will need a surveyor’s valuation on the property. Quite often your remortgage provider will pay for the surveyor’s valuation and sometimes will cover all your remortgage costs.

• Your credit status. It is possible that your current debt problem may have impaired your credit rating, therefore certain remortgage deals may not be available. However, in almost all cases Online Mortgages UK can advise on remortgage options tailored to those with a less than perfect credit rating.

The information, services and products on this web site are intended for use by residents of the United Kingdom only. Your loan advisor will review your past credit history and other personal details, and the actual rate offered may be higher depending on your personal circumstances and, for secured loans, the equity in your property. By repaying your borrowing over a longer term, your overall interest charges will increase. The actual rate available for any product will depend upon your circumstances. Ask for a personalised illustration.