A couple in their early 50s, one self-employed in design and the other semi-retired, based in the Midlands, were facing increasing financial strain. Juggling over £152,000 in high-interest credit cards, unsecured loans, and mail-order debts, their monthly repayments had escalated to unsustainable levels. They realised that by pursuing a strategy like Deal Direct debt consolidation and remortgage, they could regain control of their finances, improve monthly cash flow, and complete long-awaited home improvements—without incurring further unsecured credit.

The Challenge: Multiple High-Interest Debts and Mounting Pressure

The clients were burdened with the following issues:

• £152,620 in unsecured and secured debt across various providers
• Monthly repayments totalling around £2,647
• Credit card interest rates frequently near or above 30%
• Desire to avoid further unsecured credit and finalise home upgrades
• Existing mortgage on a variable rate and up for renewal

Despite making the minimum payments and having no missed obligations, their financial flexibility was limited, and their ability to save for the future was impacted. The couple also recognised that having multiple open credit commitments negatively affected their credit profile.

The Solution: A Tailored Debt Consolidation Remortgage

We arranged a debt consolidation remortgage to absorb the bulk of their outstanding liabilities into their new mortgage product. Here’s how the process worked:

• Consolidated £152,620 of existing debts into the mortgage
• Secured a fixed-rate mortgage offering greater stability compared to their previous variable rate
• Left out a few small and soon-to-expire debts per advice, to pay off with increased disposable income
• Incorporated funding for final home improvements

While consolidating increased the long-term repayment cost to approximately £276,242, it greatly reduced monthly payments and simplified their financial commitments, aligning perfectly with a Deal Direct approach to debt consolidation through remortgaging.

The Results: Monthly Relief and Future Planning

By consolidating their debts into a new mortgage:

• The couple now enjoys a monthly disposable income increase of £618.55
• They are saving £50,326.80 compared to paying the debt separately over time
• They’ve avoided further unsecured borrowing for home improvements
• Their credit profile will potentially improve with fewer outstanding commitments

“With the financial pressure reducing, we’re finally able to breathe again. We even plan to start saving for the future, something we couldn’t do before.”

FAQ: Debt Consolidation Remortgage Answered

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

You could save hundreds of pounds per month. In this case, the couple saved £618.55 monthly, dramatically increasing their discretionary income.

Can you remortgage to fund home improvements?

Yes, remortgaging can be an effective way to raise funds for renovations while also managing existing debt more efficiently. In particular, a Deal Direct debt consolidation remortgage can provide a comprehensive solution.

Does remortgaging affect my credit score?

It may result in a temporary dip during application processing, but in the long term, it can improve your credit score if it reduces your overall credit utilisation and number of open credit lines.

What documents are required for a remortgage application?

You’ll typically need proof of income, credit reports, current mortgage statements, and documentation of debts to be consolidated.

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

This depends on your mortgage provider. Most fixed-rate mortgages have early repayment charges (ERCs) within the fixed period. Always check your mortgage offer for details.

Take Control of Your Finances Today

Struggling to manage multiple credit card payments, loans, or high monthly outgoings? A debt consolidation remortgage could be the answer. Whether you’re looking to simplify your finances, lower your monthly bills, or fund essential home improvements, our mortgage experts are here to help.

Contact us today for a free consultation and see how much you could save.