Remortgaging is the most common route into debt consolidation, and when your existing deal is ending it is usually the cheapest. You move your mortgage to a new lender, borrow more than you currently owe, and the surplus clears your unsecured balances. This guide covers what it costs, what lenders will accept, and how the Scottish process differs.
Looking for advice on your own situation rather than the general picture? Our debt consolidation mortgage advice page has a calculator that shows the monthly difference alongside the total cost, and a short form to start a conversation.
How much can you raise?
Lenders apply two separate limits, and the lower one governs.
- Loan to value. Most mainstream lenders allow capital raising for debt consolidation up to 80–85% of the property value; a minority stop at 75%. Specialist lenders may consider up to 90%, at a higher rate.
- Affordability. The new total payment must fit the lender's affordability model, which stress tests at a rate above the one you are paying. Because the consolidated debts are being cleared, they usually drop out of the calculation — which is often what makes the sums work.
On a £230,000 property in Motherwell with £150,000 outstanding, an 85% limit gives £195,500 of total borrowing — roughly £45,500 of capital raising, subject to affordability.
What it costs
| Cost | Typical range | Notes |
|---|---|---|
| Early repayment charge | 1–5% of balance | Only if you leave a deal early — often the deciding factor |
| Product/arrangement fee | £0–£1,499 | Can usually be added to the loan, though you then pay interest on it |
| Valuation | £0–£400 | Free on most remortgage products |
| Legal fees | £0–£500 | Many remortgage deals include free standard legal work |
| Advice fee | Varies | Ours is from £495, payable on offer |
If you are still inside a fixed rate, the early repayment charge usually decides the route. Paying £4,000 to escape a deal in order to consolidate £15,000 rarely makes sense — a second charge or a further advance is often better.
The Scottish legal process
In Scotland your mortgage is secured by a standard security registered in the Land Register of Scotland, not a mortgage deed. For a straightforward remortgage many lenders appoint and pay for their own solicitor, so your costs are minimal.
You will need your own Scottish solicitor where the transaction is more involved — adding or removing a name from the title, dealing with a matrimonial home affidavit, or where a second charge is being repaid. Debt consolidation cases fairly often fall into this category, because existing secured lending has to be discharged in the right order.
A realistic timeline
- Weeks 1–2 — review your credit file, agree the amount and lender, submit the application with proof of the debts being cleared.
- Weeks 2–4 — valuation and underwriting. Debt consolidation cases attract more underwriter questions, so expect requests for statements.
- Weeks 4–6 — mortgage offer issued.
- Weeks 6–8 — legal work and completion. Most lenders pay creditors directly at completion rather than sending you the money.
Six to eight weeks is normal. Start about three months before your fixed rate ends and you can have the new deal ready to begin the day the old one finishes, with no time on the standard variable rate.
Common reasons these applications get declined
- Loan to value pushed past the lender's consolidation cap — very common, and avoidable with the right lender from the start.
- Recent missed payments on the debts being consolidated.
- Consolidating a debt taken out in the last six months, which some lenders treat as a red flag.
- An undisclosed second charge or arrears appearing on the credit file mid-application.
- Property type restrictions — ex-local authority flats and non-standard construction narrow the lender pool, which matters across parts of Lanarkshire.
Nearly all of these are predictable. We check the credit file and property first, then approach only lenders whose criteria fit — so a decline does not leave a mark on your file for the next lender to see.
Common questions
This guide is general information, not regulated financial advice, and reflects our understanding of the rules at the date shown. Tax treatment depends on individual circumstances and may change. Your home may be repossessed if you do not keep up repayments on your mortgage. Not all buy to let mortgages are regulated by the Financial Conduct Authority.