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Debt consolidation refinancing to combine loans into one repayment

Debt consolidation is a specific refinancing job: rolling credit card balances, car loans or personal loans into your mortgage or a new single facility so you're making one repayment instead of several. It's a different conversation to a standard rate-and-term refinance because the lender is assessing your full debt position, not just switching your home loan to a cheaper rate.

Brokers who handle this need to model whether spreading short-term debt over a 25 or 30 year mortgage term actually saves you money month to month versus what it costs in total interest over time, and whether your equity position even allows it.

  • Assesses how much equity you have available to absorb other debts
  • the team the total interest cost of consolidating versus keeping debts separate
  • Structures the new loan so consolidated debt doesn't just get re-drawn and reaccumulated

What it costs

Costs come from standard refinance fees (discharge fees from your old lender, potential new lender establishment fees, and possibly lenders mortgage insurance if your loan-to-value ratio moves past 80%). The bigger cost to weigh up is long-term interest: consolidating a car loan into a 30-year mortgage can lower your monthly repayment but increase the total interest paid unless you keep making extra repayments.

Top 3 by our score

Ranked from our published scoring of public Google reviews for refinancing specialists.

  1. 1. Fox Mortgage Services
    5.0★ · 264 reviews
    95
  2. 95
  3. 3. In Mortgage & Finance Services
    5.0★ · 173 reviews
    94

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FAQ

Is debt consolidation the same as a normal refinance?
Not quite. A standard refinance usually just replaces your home loan with a cheaper one. Debt consolidation folds other debts (credit cards, car loans, personal loans) into that new loan as well, so the broker has to assess your full liability picture.
Will consolidating my debts hurt my credit score?
Applying for a new loan involves a credit check which can cause a small short-term dip, but consolidating and then paying reliably on one facility can help your score over time.
Do I need enough equity in my home to consolidate debt?
Generally yes. Lenders will look at your loan-to-value ratio to see how much extra borrowing your property can support before approving a debt consolidation refinance.