Remortgage to Clear Debt and Staircase with Flexible Lending Solutions

When homeownership and financial growth intersect with credit challenges, navigating a new mortgage deal can feel overwhelming.

Fortunately, remortgaging solutions are available even for those with adverse credit, enabling individuals to buy the remaining share of their shared ownership property and achieve full ownership.

Client Snapshot: Mid-Career Professional in Southern England

A woman in her early 40s, employed full-time in the South of England, recently approached us as an existing client. Her current mortgage with Halifax was at the end of its fixed-rate term, and she wanted to staircase—buy the remaining 40% of her shared ownership home. However, recent adverse credit events and affordability concerns limited her options with traditional lenders.

Challenges: Adverse Credit & Affordability Constraints

The client had several obstacles to overcome:

• Inability to remortgage with current lender due to a credit default in 2023.
• Increased mortgage size to facilitate staircasing raised affordability concerns.
• Limited lender options willing to consider 100% of annual bonus income.
• Preference to maintain monthly payments around £1,500.

With these factors in play, a tailored and flexible approach was crucial to achieving her property and financial goals.

The Remortgage Solution: A Custom Fit for Long-Term Success

After reviewing multiple options across the mortgage market—including major lenders such as Halifax, Nationwide, and Barclays—we recommended a remortgage with Skipton Building Society. The product included:

• Loan Amount: £281,500
• Term: 26 years
• Type: 2-year fixed rate at 4.53% until December 2027
• Monthly Repayment: £1,538.40 initially

Why Skipton Was the Standout Choice

• Accepts defaults from as recent as 2023.
• Considers 100% of bonus income and lending up to age 75.
• Meets the client’s affordability target and long-term structure.

We also advised extending the term from 21 to 26 years to reduce monthly outgoings, with a transparent explanation of the additional long-term interest cost this would incur.

Financial Planning Embedded In Strategy

The remortgage was structured to include £139,957 in additional borrowing to fund the staircasing process. Early repayment charges (ERCs) were factored in, and the customer agreed not to repay the current mortgage until after the ERC period ended in October 2025, avoiding unnecessary penalties.

Outcome: Full Ownership, Stable Payments, Increased Lending Options

Thanks to a customised mortgage and a strategic approach, the client succeeded in:

• Securing her ideal property ownership arrangement—now owning 100% of her home.
• Achieving monthly repayments within budget.
• Establishing a future pathway to refinance under better circumstances in two years.
• Getting accepted by a lender despite recent credit issues and non-standard income.

Client feedback: “I didn’t think I had options with my credit issues and bonus income, but Deal Direct made a complex situation simple. From start to finish, I felt listened to and supported every step of the way.”

FAQs About Remortgaging for Debt & Ownership

Can you remortgage to consolidate debt or staircase into full home ownership?

Yes, provided affordability can be demonstrated, and a suitable lender is found. Staircasing and debt consolidation can be combined in one remortgage, as done here with lending support from Skipton Building Society.

Do credit issues mean I can’t remortgage?

No, many specialist lenders (like Skipton) consider applicants with defaults or other credit history issues, especially when a reliable income can be assessed more flexibly.

What documents are required for remortgage applications with adverse credit?

Typically you’ll need proof of income (payslips and bonus structure), bank statements, credit report, existing mortgage statement, and ID documentation. Additional financial documents may be requested depending on individual circumstances.

Can I repay a fixed-rate mortgage early?

Yes, but early repayment charges may apply. These are typically a percentage of the balance and reduce over time. In this case, a rate of 2.5% applied until Dec 2026 and 1.25% until Dec 2027.

Will remortgaging affect my credit score?

Remortgaging requires a credit check, which may cause a small temporary dip in your score. Long term, successfully managing a new mortgage often improves your credit profile.

Take Control of Your Property and Financial Future

If you’re considering a remortgage to clear debt, staircase, or simply reduce monthly payments—no matter your credit history—Deal Direct has the expertise and lender network to help you succeed.

Start your remortgage journey today. Contact Deal Direct for a free consultation and personalised options.