How a Debt Consolidation Remortgage Helped One Professional Save Over £1,250 Monthly

Customer Overview

A mid-career professional in his 40s from the South East of England was finding it increasingly difficult to manage high monthly outgoings, despite earning a strong salary. Although he never missed a payment, he was left with only £90 of disposable income each month. This was after covering his mortgage, household bills, and debt repayments. Seeking financial stability and the ability to save for future emergencies with a debt consolidation remortgage in mind, he turned to a remortgage solution to consolidate over £53,000 of unsecured debt.

The Challenge: Too Many Debts, Too Little Left Over

Like many responsible borrowers, this customer found himself burdened after years of accumulating credit card balances and personal loans. This was mostly due to higher historic living costs while renting and spending on holidays. In total, he was paying £1,660 per month across several credit cards and loans, with APRs as high as 22%. His total debt stood at £53,672, spanning over a dozen obligations. This caused significant strain on his monthly cash flow.

Despite managing to stay afloat, the constantly rising cost of living and minimal savings prompted him to act before the situation worsened. He considered a debt consolidation remortgage for his financial challenges.

Credit Commitments Included:

• £8,682 balance on a credit card with a 22% rate
• Several other cards with balances over £5,000 and high interest
• Unsecured loans with monthly repayments over £300 combined

Keeping up with all these meant little room for savings and no buffer for emergencies or inflation-led expenses.

The Solution: A Tailored Debt Consolidation Remortgage

To regain control over his finances, the applicant opted for a debt consolidation remortgage. By rolling all his high-interest debts into his mortgage, he could benefit from a much lower mortgage interest rate spread over a longer term. A detailed breakdown was conducted, with full transparency about the cost of extending debt over the mortgage term — approximately £123,982 in total repayment.

However, this approach slashed his monthly outgoings dramatically. It offered financial breathing room that had long been unavailable through a debt consolidation remortgage.

How It Worked:

• Consolidated £53,672 worth of debt into the mortgage
• Cleared costly high-interest credit cards and personal loans
• Kept only a few smaller and manageable debts outside the consolidation
• Preserved existing savings for emergencies

The Outcome: Over £1,250 in Monthly Savings and Financial Peace

By consolidating his debts into a new mortgage structure, the client saw his net disposable income increase by approximately £1,251.62 per month. While he accepted that the total loan cost would increase over the life of the mortgage, the newfound control and stability were life-changing. The remortgage prevented possible future financial hardship and enabled him to plan for the future with more stability.

“Once the debts are paid off, this is never going to occur again. I’m closing the loan and credit card accounts. I intend to be much smarter with my finances going forward.”

This transformation marked a fresh financial chapter, with a renewed focus on saving instead of relying on credit, thanks to the debt consolidation remortgage.

Frequently Asked Questions

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

In this case, the customer saved approximately £1,251.62 each month by rolling high-interest debts into his mortgage with a debt consolidation remortgage. Actual savings will vary depending on your debt amount, interest rates, and the term of the remortgage.

Can you remortgage to pay off debt?

Yes, remortgaging to consolidate debts, also known as debt consolidation remortgage, is a popular and effective strategy to reduce monthly repayments, especially if you’re managing high-interest credit cards or unsecured loans.

Does remortgaging affect my credit score?

Initially, a credit check may cause a slight dip in your score. However, consolidating debt can improve your credit rating over time by reducing utilisation and simplifying repayments.

What documents are required for a remortgage application?

Generally, you’ll need proof of income, details of current debts and mortgage, bank statements, proof of ID, and a copy of your credit report.

Is it possible to repay a fixed-rate mortgage early without penalties?

Most fixed-rate mortgages come with early repayment charges. Always check your mortgage terms or speak with your advisor before making overpayments.

Take Control of Your Finances With a Smart Remortgage Strategy

If high debt payments are leaving you with little to save each month, consider the benefits of a debt consolidation remortgage. Whether you’re dealing with credit card balances, personal loans, or both — we can help craft a solution that gives you room to breathe again.

Contact our expert mortgage advisors today to explore your personalised options and use our remortgage calculator to estimate your potential savings.