How a Remortgage Helped Consolidate £19,000 in Debt and Boost Monthly Income

For many UK homeowners, increasing living costs and reduced disposable income can lead them to consider strategic ways to regain financial freedom. One individual found a smart and lasting solution by using a debt consolidation remortgage—transforming tight monthly finances into comfortable breathing space. Here’s how restructuring high-interest debts into a mortgage led to improved cash flow and renewed financial confidence.

Customer Overview

A woman in her early 40s, working in the public sector and living in a suburban area in England, approached us because she felt financially stretched. While her payments were being made on time, her monthly budget left little room for savings. With sole responsibility for the mortgage and household expenses after a relationship breakdown, she was determined to tidy up her finances and build a sustainable future. For her, considering a remortgage for debt consolidation was a logical next step.

The Financial Challenges

• Monthly outgoings felt tight, despite keeping up with payments
• Existing debts totaling £19,254 across a high-interest unsecured loan and a credit card
• Most income used to service debts and mortgage, leaving minimal savings
• Desire to avoid further credit reliance and start saving again
• No access to savings or alternative funds to pay debts off more quickly

Debt Breakdown

The client held two significant high-interest debts. Importantly, exploring options such as debt consolidation remortgage made sense to her situation.

• Credit Card: £8,455 at 25% APR – used for necessary home improvements
• Unsecured Loan: £10,799 at 14% APR – used to buy out an ex-partner and secure full property ownership

Keeping these debts separately would have cost over £29,000 to repay.

The Remortgage Solution

Our advisor recommended a tailored remortgage to consolidate debts. By integrating the £19,254 worth of liabilities into a new mortgage, the client could:

• Secure a lower interest rate compared to the original debts
• Spread payments across the term of the mortgage, easing monthly obligations
• Remove the emotional and financial strain of juggling multiple repayments thanks to debt consolidation through remortgage

After reviewing affordability, long-term implications, and non-consolidated commitments (car finance and a small credit card), we facilitated a suitable remortgage product. The equity in her property helped unlock this solution efficiently before rates further increased.

Results and Benefits

The new mortgage did carry a higher long-term repayment cost—an additional £3,659.88 over the full term—but the monthly financial ease justified it, especially with inflation and cost-of-living concerns. In short, debt consolidation remortgage improved her cash flow and reduced anxiety.

• Monthly disposable income increased by approximately £313.41
• Cleared high-interest credit card and personal loan
• Reduced money stress and enabled future savings goals
• No currently anticipated need to rely on further credit

“I wasn’t struggling to pay my debts, but by the end of every month it felt like I couldn’t breathe financially. This remortgage gave me that space back. Now I can save regularly and stop worrying about scraping by each month.”

– Client Testimonial

Frequently Asked Questions

Can you remortgage to consolidate debt?

Yes, remortgaging can allow you to consolidate high-interest debts into your mortgage, often reducing your monthly outgoings and relieving financial pressure. In fact, many clients ask about remortgage for debt consolidation as a more manageable option.

How much can I save monthly by consolidating credit card debts into a mortgage?

Savings vary case by case, but in this example, the client saved over £313 per month after combining debts into a lower-interest mortgage. Opting for debt consolidation through remortgage arrangements often helps people free up monthly income.

Will remortgaging affect my credit score?

It can temporarily impact your credit score due to checks and account closures, but over time, consistent lower payments may improve your score when managed well.

What are the risks of consolidating unsecured debt into a mortgage?

Unsecured debt becoming secured means your home is potentially at risk if you fail to make payments. Also, spreading the debt over longer terms can increase total repayment amounts. If you undertake a debt consolidation remortgage, make sure you understand all risks.

What documents are needed to apply for a remortgage?

You typically need proof of income (payslips or tax returns), a current mortgage statement, bank statements, and details of the debts being consolidated. People planning for debt consolidation remortgage should always prepare clear documentation upfront.

Take the First Step Toward Financial Freedom

If you’re feeling financial strain from juggling debts—even if you’re not in arrears—a debt consolidation mortgage could ease the load. Let us help you evaluate your options and create room to breathe again. Applying for debt consolidation remortgage may be a positive move toward regaining control.

Contact our specialist mortgage advisors today to discover the best remortgage solutions for your circumstances.