How a Debt Consolidation Remortgage Helped a Birmingham Family Achieve Financial Freedom

Customer Overview: A Professional Family Seeking Financial Relief

A married couple in their mid-to-late 40s and early 50s, residing in Birmingham, recently reached out to us for support with their mortgage. The main applicant is a network engineering manager with a leading telecoms provider, and the joint applicant is a risk analyst for an international bank. With a dependent child at home and having owned their property since 2021, the family had accumulated various forms of debt, including personal loans and credit cards, largely due to supporting their daughters’ education.

The Challenge: Managing High Monthly Debt Repayments

Despite a strong combined income (over £115,000 annually), this family faced considerable financial pressure. Their current mortgage with Bank of Ireland totalled approximately £234,000, against a property valued around £400,000. The major challenge was the burden of outgoing payments on multiple unsecured debts:

• Several personal loans totalling around £55,000 (approx. £1,600 a month in repayments)
• Credit card debt exceeding £28,000

They wanted to consolidate all these debts into their mortgage to reduce monthly outgoings, streamline repayments, and regain control of their finances—especially with university costs for their children contributing to their borrowing.

The Solution: Debt Consolidation Remortgage

After completing a soft credit search and reviewing their circumstances, our team recommended a debt consolidation remortgage at 85% loan-to-value. Here’s how we tailored the solution:

1. Assessment: Reviewed all outstanding unsecured credit, existing mortgage, income, and property value.
2. Lender Selection: Identified high street lenders prepared to offer up to 85% LTV, critical for covering both the existing mortgage and consolidation needs despite a lower credit score caused by debt levels (with no missed payments).
3. Quote Provision: Offered remortgage options for both 2-year and 5-year fixed rates, allowing the family flexibility to decide based on goals and market forecasts.
4. Document Guidance: Provided a clear checklist (bank statements, payslips, P60s, proof of address, passports, and settlement status) to move the application swiftly forward.
5. Valuation Strategy: Recommended a slightly higher property valuation figure to account for possible down-valuations from lenders’ surveyors, ensuring the new mortgage amount was achievable.

Results: Streamlined Finances and Improved Peace of Mind

This remortgage solution allowed the family to:

• Reduce total monthly outgoings substantially by rolling higher-interest unsecured debts into their mortgage.
• Simplify repayments with a single, predictable monthly payment.
• Boost financial flexibility as university-related debts for their children were absorbed, easing pressure on day-to-day living expenses.
• Help future planning with competitive fixed-rate options, allowing them to potentially revisit their mortgage as rates improve.

“We’re looking to clear everything and start afresh… I just want to put everything into one, and this allows us to do so.” — Anonymised Client Testimonial

Frequently Asked Questions (FAQ)

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

The amount you can save depends on your total unsecured monthly repayments and the interest rate of your new mortgage. In this case, the customer reduced outgoings by consolidating roughly £83,000 of debt, previously costing around £1,600 monthly, into the mortgage—resulting in a more manageable repayment structure. Use a remortgage calculator for a quick estimate based on your figures.

Can you remortgage to fund home improvements?

Yes! Besides debt consolidation, remortgaging can release equity for home improvements, subject to lender approval and property valuation.

Does remortgaging affect my credit score?

Initially, there may be a slight dip due to the credit searches and new account opening, but paying off unsecured debts can improve your score over time—especially if you avoid missed payments and reduce your credit utilisation.

What documents are required for a remortgage application?

• Last 3 months’ bank statements
• Last 3 months’ pay slips for each applicant
• Proof of address (recent utility or council tax bill)
• Passports and, if applicable, settlement status documents or share code
• P60 forms (annual tax summary) strongly recommended

Can I repay a fixed-rate mortgage early without penalties?

Most fixed-rate mortgages include early repayment charges—always confirm with your lender or mortgage broker before making extra payments or switching products.

Take Control with a Debt Consolidation Remortgage Today

If you’re feeling overwhelmed by multiple high-interest debts, a debt consolidation remortgage could be the solution to simplify your finances and put you back in control. Contact Deal Direct for a personalised quote and free advice. Make your monthly budget work for you—one manageable payment at a time.