Debt Consolidation Remortgage: How One Couple Reclaimed £2,000+ in Monthly Budget

Customer Overview

A married couple in their late 50s from the UK, both in full-time employment, found themselves balancing high-interest credit card debts and personal loans accrued over years. Although they were consistently meeting all repayments, their monthly budget left little room for savings or financial flexibility. This situation made them consider remortgaging for debt consolidation purposes.

The Challenge: Overwhelmed by Multiple High-Interest Debts

Between them, the couple held over eight different credit cards and personal loans, totalling £87,874. These debts were draining nearly £2,400 from their monthly income. Much of the debt stemmed from unforeseen costs during home renovations, combined with a significant health issue that temporarily reduced household income. Despite catching up financially, their disposable income remained critically low.

They faced several key challenges:

• High interest rates — up to 35% APR on some credit cards.
• Multiple monthly commitments — with payments spread across various lenders.
• No existing savings — and limited financial wriggle room month-to-month.
• Unfinished home improvements — that would require further borrowing.
• Desire for long-term financial security — and eventual eligibility for high street mortgage rates.

The Solution: Debt Consolidation Through a Tailored Remortgage

After conducting a full financial review, we proposed a debt consolidation remortgage strategy. By using the equity in their property, they were able to:

• Consolidate £87,874 in debts into a single, structured mortgage payment.
• Lower monthly outgoings by over £2,000, boosting usable income.
• Release additional equity to complete critical home improvement projects—without resorting to more unsecured borrowing.
• Select a mortgage product with a competitive fixed interest rate, preserving their future flexibility.

All this was achieved while avoiding the over-inflation of the mortgage amount and maintaining a sustainable long-term repayment outlook. It also enabled them to avoid consolidating low-balance or short-duration debts unnecessarily—keeping costs and repayment terms in check.

Results: Financial Stability, Home Improvements, and Long-Term Flexibility

By implementing the debt consolidation remortgage strategy, the couple unlocked a decisive improvement in financial control:

• £2,021.50 increase in monthly disposable income
• Funds released for key home renovations without adding unsecured debt
• All high-interest commitments cleared
• Lower loan-to-value maintained, keeping mortgage interest rates competitive
• Plan in place to overpay and reduce the mortgage term once unsecured debt is cleared

While the total long-term consolidation cost added approximately £15,000 in interest over the span of the mortgage, the immediate and mid-term benefits—cash flow, debt clarity, flexibility, and home completion—far outweighed the cost for these borrowers. Their situation now provides a stable launchpad toward financial growth, savings, and improved borrowing potential.

Client Feedback

“Now that we’ll have over £2,000 extra each month, we can finally breathe. We’re not just managing to survive anymore—we’re building a future.”

Frequently Asked Questions

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

This varies depending on interest rates and balances. In this case, the clients saved approximately £2,021.50 per month by consolidating £87,874 of high-interest debts into their mortgage through a debt consolidation remortgage.

Can you remortgage to fund home improvements?

Yes. This couple released additional equity to complete their renovations as part of the remortgage, avoiding more expensive unsecured borrowing options.

Does remortgaging affect my credit score?

Initially, there may be a small dip due to credit checks. However, paying off multiple debts improves your credit utilisation ratio—and overall credit score—over time.

What documents are required for a remortgage application?

Typically:

• Proof of ID (passport or driving licence)
• Proof of address (utility bills or bank statements)
• Recent payslips and P60s
• Bank statements (usually last 3 months)
• Details of existing credit commitments and mortgage statements

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

It depends on the lender and product. Many fixed-rate mortgages include early repayment charges (ERCs). We always make clients aware of their options and any fees involved upfront.

Take Control of Your Finances Today

If you’re juggling multiple debts or struggling under the weight of credit cards and personal loans, a debt consolidation mortgage could offer a clear path forward. Our team can help assess your situation, provide honest guidance, and structure a solution that works for your goals—without compromising your future financial stability through a thoughtfully considered debt consolidation remortgage.

Contact us now to start your free remortgage consultation or use our remortgage calculator to explore your savings.