The catch is that a mortgage runs over a much longer term than personal borrowing. A debt that might have been cleared in three years becomes part of a mortgage that could run for 15 or 20 more years. Even at a lower rate, you may end up paying considerably more interest in total. This is the most important thing to weigh up, and we always run these numbers for you in full.
You also need to consider that unsecured debt becomes secured when it moves to a mortgage. Credit card debt is unsecured, meaning if you cannot pay it, the lender has limited immediate recourse. When that same debt is part of your mortgage, it is secured against your home. Falling behind on mortgage payments puts your home at risk in a way that credit card arrears do not.
Despite these risks, a consolidation remortgage can be the right decision for people who are struggling with multiple high-rate payments and need genuine breathing room in their monthly budget. We will never push you towards this option, but if it is the right one for your situation, we will structure it in a way that minimises the long-term cost.
