How a Barclays Debt Consolidation Mortgage Helped One Couple Regain Financial Freedom

Customer Overview

A middle-aged couple from southern England—both employed in white-collar roles—were facing rising financial pressures. Tied into an existing fixed-rate mortgage, they were struggling with a high monthly outlay due to multiple debts and a limited ability to increase disposable income. With their current lender unable to support a new borrowing arrangement, they turned to a professional mortgage broker for help and discovered the benefits of a Barclays debt consolidation mortgage.

The Financial Challenge

The couple had an existing mortgage with NatWest, locked in until March 2026. Their goal was to remortgage early to consolidate approximately £87,644 in unsecured debts, free up cash flow, and secure a lower monthly repayment. However, issues arose:

• The existing lender’s affordability criteria limited further borrowing.
• High monthly payments under their current term strained their budget.
• Early exit fees of over £1,293 loomed, making timing critical.

The Debt Consolidation Remortgage Solution

After an in-depth financial assessment, the couple’s appointed mortgage adviser recommended switching to a 10-year repayment mortgage with Barclays Bank Plc at a competitive fixed rate of 4.25% until December 2027. This new Barclays debt consolidation mortgage arrangement allowed them to:

• Consolidate unsecured debts into one manageable mortgage product.
• Keep monthly repayments under their £2,750 target (£2,714.85 initially).
• Secure a fee-free mortgage that included help with legal and valuation costs.

Unlike other options from Halifax, Nationwide, or HSBC—who couldn’t offer the lending needed—Barclays did not impose a debt-to-income (DTI) cap, making them the ideal lender for a debt consolidation mortgage.

Tailored Features for Financial Flexibility

• Overpayment options of up to 10% per year without penalty.
• Portability of the mortgage during the fixed period.
• No arrangement, valuation, or survey fees.

The couple also opted for a 2-year fixed term in expectation of falling interest rates, preserving the freedom to remortgage again in the near future with minimal financial penalties.

Results Achieved

By consolidating their unsecured debt into the Barclays mortgage, the couple achieved several financial benefits:

• Lowered monthly financial burdens under a manageable fixed rate.
• Improved cash flow for everyday and long-term expenses.
• One streamlined monthly payment instead of multiple creditors.

Although the cost of securing the debts (£1.30 per £1 borrowed) meant the total repayment would be higher over time, the immediate relief in affordability and stress far outweighed the long-term cost, thanks to their decision to use a Barclays debt consolidation mortgage.

“This is exactly the breathing room we needed. It’s a relief knowing our monthly payments are affordable, and we have a plan for the future.” – Anonymous Customer

Frequently Asked Questions (FAQs)

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

This depends on your current debt obligations and mortgage rate. In this case, the clients reduced their monthly payments to under £2,750, significantly less than the combined repayments on unsecured debts and mortgage.

Can you remortgage to fund home improvements or consolidate other debts?

Yes, many people remortgage to raise capital or consolidate debt. However, it’s essential to understand it may increase the overall interest paid.

Does remortgaging affect my credit score?

Remortgaging itself doesn’t typically harm your credit, but credit checks during the application and consolidating debts can have short-term impacts. Over time, improving your debt management may improve your score.

What documents are required for a remortgage application?

Typically, you’ll need proof of income (payslips or accounts), ID, details of existing mortgage and debts, and bank statements. Some lenders might ask for additional documentation based on your circumstances.

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

It depends on your mortgage. In this example, a 2% early repayment charge applied until December 2027, with 10% overpayment allowed annually with no penalty.

Take Your First Step Toward Financial Clarity

If you’re weighed down by credit card bills, personal loans, or high mortgage repayments, a debt consolidation mortgage may help you take control of your finances. Speak to a qualified adviser today to explore tailored mortgage solutions that work for you. A Barclays debt consolidation mortgage could be your first step to financial freedom.

Contact our expert mortgage team today and discover how smart financial planning can ease your debt and restore peace of mind.