How a Debt Consolidation Remortgage Helped One Homeowner Regain Financial Control

Customer Overview

A homeowner in their 40s based in the UK, currently employed in a professional field, was approaching the end of a mortgage term with NatWest. Faced with multiple financial priorities and a desire to simplify their monthly commitments into a debt consolidation remortgage 2025 plan, they explored a remortgage solution to consolidate debt and address personal circumstances.

The Challenge: Multiple Financial Objectives and High-Interest Debts

This customer had a few pressing financial goals:

• Remortgage due to an expiring mortgage deal with NatWest
• Raise £20,000 to buy out their ex-partner and gain sole ownership of the property
• Clear two high-interest credit cards totaling £3,530
• Shorten the mortgage term for faster repayment

Although the credit card balances weren’t huge, both had interest rates around 35%, creating a debt repayment timeline extending until 2032 and costing an estimated £7,972 if continued as is. The client also preferred to avoid using all available savings so they could maintain a financial safety buffer.

The Solution: A Debt Consolidation Remortgage

Through a debt consolidation remortgage 2025 plan, the homeowner increased their mortgage slightly to:

• Secure an additional £20,000 to buy out their ex-partner
• Add £3,530 in credit card debt to the mortgage balance
• Adjust mortgage terms to keep monthly payments stable
• Reduce the overall mortgage term by one year

This approach transformed two unsecured high-interest credit cards into lower-rate, secured mortgage debt while preserving the client’s savings. The implications of securing previously unsecured loans were clearly explained, and the long-term cost of consolidating was outlined: approximately £5,259.70 over the mortgage term versus £7,972 if left unpaid on the cards — delivering a projected saving of around £2,712.30.

Why Debt Consolidation Made Sense

The homeowner’s logic was clear: they weren’t in financial distress and had no missed payments, but they wanted to simplify their finances while being strategic. Consolidating the debt into their mortgage helped streamline outgoings while supporting financial resilience. They hoped that by 2025, they could fully benefit from their debt consolidation remortgage plan.

“It felt like the right time to tidy things up. I wanted to keep things manageable while paying off my ex and clearing some high-interest debts — without touching all my savings.”

Financial Outcomes Achieved

• Debt consolidation savings: £2,712.30 saved over the life of the loans
• Improved financial security: Maintained emergency savings while clearing debt
• Streamlined payments: One manageable monthly mortgage payment replacing multiple outgoings
• Ownership resolution: Sole ownership achieved by raising funds via the mortgage
• Faster payoff: Reduced the mortgage term by 1 year

Frequently Asked Questions

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

In this case, the homeowner consolidated £3,530 in credit cards with 35% interest rates into the mortgage, saving an estimated £2,712.30 over time. While monthly payments stayed roughly the same, the long-term interest savings were significant with their debt consolidation remortgage 2025 plan.

Can you remortgage to pay off debt?

Yes. A remortgage to clear debt allows you to consolidate unsecured debts like credit cards into your mortgage — potentially at a lower interest rate and with simplified monthly payments.

Does remortgaging affect my credit score?

Initially, a remortgage may cause a small dip in your score due to credit checks, but over time, consolidating debt and making regular payments could strengthen your credit profile.

What documents are required for a remortgage application?

Typically, you’ll need proof of income (payslips or tax returns), recent bank statements, your current mortgage balance, ID, and details of any debts you wish to consolidate.

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

That depends on your lender and specific mortgage agreement. Early repayment charges (ERCs) may apply. Always check your mortgage terms before making overpayments or paying it off early.

Is Debt Consolidation Right for You?

If you’re managing high-interest debt and want a smarter, more streamlined approach to your finances, a debt consolidation remortgage 2025 may be the right solution. As this case shows, it can be used strategically even when you’re financially stable but looking for better long-term planning.

Ready to find out how much you could save?

Use our remortgage calculator or speak with an expert advisor today to explore your tailored solution. From credit card debt to planning for the future, we’ll help you clear financial hurdles with confidence.