If you are weighed down with credit card debt or loan payments which are too much to cope with each month, could there be a solution?

For homeowners, there could.

Interest rates on unsecured loans and credit cards tend, in the main to be higher than on a mortgage.

Raising enough money by remortgaging to pay these debts off could therefore be a solution.

Generally speaking a mortgage is taken over a longer term than an unsecured loan and this coupled with the lower interest rate means payments could be more manageable.

This option is only available though if there is enough equity in your property.

Equity is the difference between the value of your home and the balance outstanding on your mortgage.  This figure, plus the amount of unsecured loans you want to pay off usually need to be less than 85% of the value of your property, although this figure will vary depending on your circumstances.

It should also be noted that mortgage lenders will generally only consider a re-mortgage to repay existing debts if those debts, and any others you have had both in the past and at the moment are up to date and you have not missed any payments.

It should be said also that whilst re-mortgaging to repay your unsecured loans and credit cards may help you reduce your monthly outgoings, it is not something which should be done lightly.

Talking to an experienced whole of market mortgage broker is highly recommended. They will be able to review your circumstances and guide you through whether a re-mortgage is the right thing for you to do.

By re-mortgaging to repay loans and credit cards you are essentially taking unsecured debt and securing it against your home which could, should the worst happen, be repossessed by the lender if you default on your mortgage.

Likewise, as you're likely to be paying your mortgage over a longer time frame than your unsecured loans, even if the interest rate might be lower, you will be paying interest on the debt for a much longer period. This is likely to mean you finish up paying more interest in total this way.

In summary, provided the figures add up for you a re-mortgage could be the answer.

It is however vital that you take advice before re-mortgaging by talking to an experienced whole of market mortgage advisor.

If a re-mortgage is the right course of action, a whole of market broker will be able to make sure you are introduced to the right lender for you.