Published 21 July 2017 · Last reviewed 1 May 2026
Want to borrow up to six or seven times your income if so a Remortgage may not be your best option.
Debt consolidate and capital raising options
Most mortgage lenders limit borrowing to 4 to 5 times your income but we have access to specialist second mortgages that may stretch this to 6 to 7 times your income allowing you to borrow more.
How does it work? Well you keep your current mortgage and take out a further one which is often referred to as a second mortgage or a secured loan on the property. Itโs ideal if you need more than a traditional remortgage can offer.
Example:
Jon is a plumber with last yearโs net profit was ยฃ29,000. He is looking to clear his expensive credit cards and needs to borrow ยฃ40,000.
Existing mortgage ยฃ160,000 with Halifax
Debt consolidation ยฃ40,000 to clear credit cards
Total borrowing needed ยฃ200,000
Typically traditional mortgage lenders would cap out at 5 times his income which would only provide him with ยฃ145,000 (ยฃ15,000 less than he has already). However, using a second mortgage with a 7 times income multiple he could potentially borrow ยฃ203,000 (ยฃ3,000 more than needed) to clear his credit cards.
Why are second charge lenders so generous? Well they appreciate that if you are servicing debt at a higher rate than them without issues then lending at 6 to 7 times your income should be fine. Second Mortgage are also normally much smaller then your traditional first charge mortgage which represent a smaller level of risk for the second lender.
You are consolidating your existing financial commitments, you should therefore be aware that whilst this may mean you will make short term savings, over the long term, you may end up paying more. This is because you may be extending the period of the loan. You are also transferring previously unsecured debts to a mortgage which is secured on your home. The reason you want to consolidate your existing debts is to reduce your monthly outgoings.
Please also be made aware Lenders tend not to look favourably on applicants that have a repeated history of debt consolidation so future finance for this reason may be hard to obtain.