List every balance
Record settlement figures, rates, minimum payments, remaining terms and any promotional periods before comparing a new loan.
Debt consolidation for homeowners
One new payment. A different kind of risk.
Debt consolidation replaces selected existing debts with one new agreement. If that agreement is a homeowner loan, borrowing that was previously unsecured becomes secured against your property.
An enquiry does not guarantee approval or any particular terms.
Important information
Look beyond a lower monthly payment.
Combining existing debts may change your monthly payments, but could extend the repayment period and increase the total amount repaid, while moving previously unsecured borrowing such as credit cards, personal loans and overdrafts against your home.
Your home may be repossessed if you do not keep up repayments on a loan secured against it.How consolidation works
A new debt replaces the balances included.
The consolidation funds are used to clear the agreed existing debts. The homeowner loan then continues under its own terms, usually alongside your first mortgage.
Choose debts carefully
Moving a low-cost balance or debt close to being repaid into longer-term secured borrowing may increase its cost.
Plan what happens next
Cleared credit accounts may remain available. Consider closing or reducing limits and address why the balances built up.
Compare before applying
Another loan is not the only possible route.
Review the whole household position and compare options without assuming that consolidation—or secured borrowing—is appropriate.
Monthly payment and full cost
Compare like for like, then test the budget.
A lower monthly payment can result from repaying over longer. Compare the new agreement with the debts being cleared and check whether both secured payments would remain affordable if household circumstances changed.
Understand interest rates and costs01
Monthly paymentCompare the immediate effect on the household budget.
02
TermCheck how many months or years the new agreement will run.
03
Rate, APRC and feesInclude fees added to the loan and the interest charged on them.
04
Total amount repayableCompare the full cost with realistic alternatives, not only the headline payment.
Before enquiring
Build the comparison from current figures.
Prepare a complete budget and obtain up-to-date information for every debt you may want to include.
- Current balances and settlement figures
- Interest rates, minimum payments and remaining terms
- Promotional periods and early-settlement costs
- Income, essential spending and priority commitments
- Existing mortgage and other secured-loan details
- A plan for cleared accounts and avoiding new balances
Common questions
Debt consolidation FAQs
These answers explain general features. Any offered agreement will contain the terms that apply to an individual loan.
What is a secured debt consolidation loan?
It is a new loan secured against your property and used to repay selected existing debts. Where you already have a mortgage, it will usually be a separate second-charge loan with its own rate, term and payment.
Will debt consolidation reduce what I owe?
Not automatically. Existing balances are repaid with new borrowing. Fees may be added, and a longer repayment term can increase the total amount repaid even if the monthly payment is lower.
Which debts could be consolidated?
Depending on the lender and individual assessment, eligible borrowing might include credit cards, personal loans or overdrafts. Each balance should be reviewed separately because moving lower-cost or short-term borrowing into a longer secured loan may cost more.
What happens to credit accounts after consolidation?
Repaying a balance does not necessarily close the account. If credit is used again, you could have the secured consolidation loan as well as new unsecured balances, so the plan should address how the debts arose and how further borrowing will be avoided.
A considered next step
Figures gathered and alternatives compared?
If you still want to explore a homeowner loan, share the purpose and household position. Terms and availability depend on the individual assessment.