One solution to debt is to refinance. If you own an asset, such
as a house then you may have equity within your home. This is known
as a remortgage. The equity is the difference between what
your house is worth and the remaining mortgage and any other
Loans to Help with Debt
Our expert debt advice team can talk you through the process of
a refinance and explain in detail what it would mean for you.
Unlike a debt solution, such a bankruptcy, refinancing and using the money
to pay your debt will not negatively affect your credit file.
Benefits of refinancing
- If you have enough equity within your asset (house, car etc)
you can clear your debt quickly in comparison to other
- A refinance does not get recorded on your credit file. However,
if you have defaulted on payments prior to refinancing then your
creditor may have added it to your credit file
Negatives of refinancing
- You will need to have enough disposable income to cover the
additional secured debt
- Any available money within your asset will be used to repay
your debt. As a result you may no longer have any equity left
within your asset (e.g. house). This means your unsecured debt will
become secured against your property.
If you remortgage your property and don't maintain the monthly
payments your home will be at risk of repossession.
- Your unsecured debt would be
£5,000 or greater
- You must have sufficient disposable income to cover the