How a Debt Consolidation Remortgage Helped Reduce Monthly Payments by £383: Real Story

Customer Overview: Struggling with High Monthly Payments

A couple in their early 40s, both working full-time in the public sector and living in the Midlands, reached a financial breaking point due to high monthly outgoings. With a mortgage and a secured loan weighing heavily on their finances, they needed a practical way to streamline payments and boost disposable income with the help of a remortgage strategy. Considering a debt consolidation remortgage in 2025 could be a step in the right direction for many facing similar issues.

Financial Challenges: High Outgoings, No Savings, and Stress

Like many homeowners, the couple faced rising costs that left them with little to no disposable income at the end of the month. Their monthly secured loan payment of £460 had become unmanageable in the context of their total mortgage and household expenses. The secured loan, used for necessary home repairs like replacing windows and fixing a long-term bathroom leak, had helped improve their living conditions but left them financially stretched.

• Total secured loan: £27,604.00
• Monthly loan payment: £460.00
• Estimated total repayment (if left unaddressed): £51,619.48
• No savings and no financial buffer for emergencies

They feared missing future payments if things didn’t change soon. After exploring multiple routes, they realised a debt consolidation remortgage was the only cost-effective solution that matched both their short-term needs and long-term financial security.

The Solution: A Debt Consolidation Remortgage

Our advisors recommended a debt consolidation remortgage to combine the existing mortgage and secured loan into one manageable monthly payment. They chose to remortgage to a new lender, as their current lender, Accord, required them to pay solicitor fees for removing the secured loan separately. With the new mortgage provider, solicitor fees were covered, making the remortgage both easier and cheaper. For many, considering a debt consolidation remortgage might be crucial moving into 2025.

Why This Worked for Them

• No upfront solicitor fees – Saving hundreds on administrative costs
• Secured loan incorporated into new mortgage – Simplified to one monthly payment
• Lower interest overall – Access to a better fixed-rate deal than their existing terms
• Extra disposable income of £383/month – Immediate improvement in cash flow

The couple understood that they’d ultimately pay more over the life of the mortgage—around £5,619.48 more—but a debt consolidation remortgage ensured the short-term gain gave them breathing space to save, manage changing monthly costs, and ensure they wouldn’t fall into arrears.

Results: Financial Relief and Forward Planning

The remortgage gave them the financial reset they needed. With a newly gained monthly surplus of roughly £383, they could now plan for the future—including building up a savings pot for emergencies and sustaining their efforts in 2025. A debt consolidation remortgage during this period can indeed provide much-needed relief.

Quote from the couple: “We really didn’t have many options left. By consolidating the secured loan into our mortgage, it’s all in one payment now—it just makes things easier to manage. We can finally think about saving again.”

Their goal wasn’t just survival—it was stability. By improving their monthly cash flow and removing financial strain, this debt consolidation remortgage helped set the groundwork for future home improvements and better money management without taking on new credit commitments.

Frequently Asked Questions

How much can I save monthly by consolidating credit card or secured loan debts into my mortgage?

In this case, the couple saved approximately £383 per month by consolidating a secured loan into their mortgage. Your actual savings will vary based on interest rates, loan amounts, and term length. Look into a debt consolidation remortgage in 2025 to understand potential benefits.

Can you remortgage to fund home improvements?

Yes. This couple had previously used a secured loan to cover critical home repairs. In their case, they remortgaged after the fact to consolidate that loan, reducing monthly pressure. Homeowners may also remortgage proactively to access funds for improvements, especially with favourable terms in 2025 related to debt consolidation remortgages.

Does remortgaging affect my credit score?

Applying for a remortgage usually results in a soft or hard check, which may temporarily impact your score. However, consolidating debts can improve your credit over time by reducing overall credit utilization and making repayment easier.

What documents are required for a remortgage application?

Typically, you’ll need identification, proof of income (like payslips or tax returns), current mortgage statements, a credit report, and details about existing debt. Financial advisors will guide you through the full list when considering a debt consolidation plan moving into 2025.

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

Most fixed-rate mortgages include early repayment charges (ERCs) during the fixed period. After that period ends, you can typically make overpayments or repay in full with few or no penalties. Always check your mortgage terms first.

Take Control of Your Finances Today

If you’re overwhelmed by high monthly repayments and juggling multiple loans, a debt consolidation remortgage could be the smart solution for 2025. Whether you’re looking to streamline your monthly budget or make space for long-term savings, we’re here to help.

Speak to one of our mortgage experts today and discover how you can reduce your outgoings, consolidate your debts, and build a stronger financial future.

Contact us now for a free consultation →