Remortgage to Clear Debt: How One Strategic Move Saved Over £9,000 and Boosted Monthly Income

Customer Overview: A Proactive Financial Reset

A hardworking couple in their 40s from the South of England, both employed in the healthcare sector, recently approached us for a proactive financial restructuring to remortgage and clear debt. Despite keeping all their financial commitments up to date, they sought an opportunity to streamline their obligations and increase future financial flexibility by consolidating their debts into one smaller monthly payment. This strategy included a focus on using remortgage to clear debt efficiently, thus achieving a vital financial reset. Remortgage clear debt was their main goal.

The Challenge: High-Interest Debts & Expiring Fixed Mortgage

With an £80,000 Barclays overdraft accruing interest-only payments and multiple credit cards with APRs of up to 33%, the couple faced high monthly outgoings. Their fixed-rate mortgage was also set to expire soon. While they weren’t struggling financially, these repayments limited their disposable income and longer-term planning, making it essential to remortgage some of their loans to efficiently clear debt. A remortgage to clear debt was the strategy they pursued in order to address these financial challenges effectively. Their choice to remortgage is focused on a strategy that helps clear their outstanding financial obligations.

Key debts included:

• Barclays Overdraft: £80,000 interest-only facility
• Three credit cards: Total balance of £15,020 with estimated repayment costs reaching nearly £30,000 due to high interest over time

The Strategy: A Smart Debt Consolidation Remortgage

Rather than continue making fragmented payments, the couple chose to remortgage to clear debt and consolidate all outstanding unsecured commitments—including the overdraft and multiple credit cards—into a new repayment mortgage. Making the decision to remortgage as a step to clear debt increased their financial outlook. A strategic remortgage clear debt approach allowed them to align their financial goals efficiently with this approach.

With the help of our advisors, they consolidated £15,020 in credit card debt while restructuring their mortgage through NatWest. This allowed all their financial obligations to fall under a single, lower-interest repayment plan—providing clear visibility and an end in sight. The remortgage offered up to 20% annual overpayment allowance, granting the flexibility to reduce the overall term aggressively using surplus income in their effort to clear debts.

Why Not a Secured Loan?

While some might consider secured loans for bad credit or standalone loan consolidation products, the couple’s strong mortgage equity and repayment record made remortgaging a better-fit, cost-effective solution long-term. The choice to remortgage clearly helped to effectively clear debt, proving remortgaging to clear a complex debt structure is beneficial.

The Results: Immediate Monthly Savings & Long-Term Goals

• Net disposable income increased by approximately £631.95/month by replacing multiple high-interest payments with one affordable mortgage instalment
• Projected total savings of £9,394.60 over the mortgage term
• One single affordable monthly payment, simplifying personal finances
• Plan to use extra income for savings and mortgage overpayments, potentially reducing both term and interest costs further

The couple now experiences more financial peace of mind and have a structured journey toward full debt repayment and eventual homeownership without outstanding obligations thanks to their decision to focus on a strategic remortgage, which allowed them to clear their debt efficiently. Using remortgage to clear debt has proven pivotal for their financial stability.

“This isn’t about struggling—it’s about simplifying. We’re turning several moving parts into one manageable plan, with a real roadmap to being debt-free.”

Frequently Asked Questions

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

In this case, monthly disposable income increased by approximately £631.95. Actual savings vary depending on the debts being consolidated and the terms of your new mortgage through remortgage.

Can you remortgage to fund home improvements?

Yes. Remortgaging can be used to raise additional funds for projects like renovations, provided you have sufficient equity and meet lender criteria. This mechanism is similar to using remortgage strategies for debt clearance.

Does remortgaging affect my credit score?

A new credit check is required which may cause a short-term dip, but the impact is generally minimal. Over time, consolidating and making regular payments could improve your score.

What documents are required for a remortgage application?

• Proof of income (payslips, tax returns)
• Bank statements
• Details of existing debts
• Mortgage statements
• Photo ID and proof of address

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

Most fixed-rate products allow a certain percentage (e.g., 10–20%) to be overpaid annually without penalties. This couple chose NatWest, which permits up to 20% overpayments each year. Always check your lender’s early repayment terms.

Ready to Reset Your Finances?

If you’re considering a debt consolidation mortgage or looking for the best remortgage solution to clear debt, we’re here to help. Our advisors will walk you through the process, explore your options, and find the most cost-effective way to achieve financial freedom by using remortgage to clear your debt with a clear focus on remortgage to clear debt.

Contact us today and take your first step toward a simplified, debt-free future. In this context, a remortgage clear debt strategy can be your best ally.