How a Debt Consolidation Remortgage Helped a Surrey Couple Regain Financial Control

Customer Overview

A married couple in their early 40s—one a corporate professional and the other self-employed—based in Surrey recently faced a growing financial strain as interest rates spiked. Their decision to consider consolidating debt with a remortgage was sparked by their experience of rising bills. With two mortgages, a secured loan, and multiple credit card payments, their rising monthly bills were becoming unmanageable.

The Financial Challenge

John and Linda were repaying two mortgages: one at 2.03% and another at 4.7%. These rates were due to increase significantly—up to 8% for the second mortgage—leading to a dramatic rise in monthly repayments. Additionally, they were also servicing a secured loan of £37,416 and two high-interest credit cards with rates nearing 30%. Their total monthly outgoings were projected to increase to over £2,050, which they could not afford on their current combined income. They started to look into options such as a remortgage for debt consolidation to manage these repayments.

Breakdown of their repayment amounts before remortgage:

• Primary mortgage: £1,564 (with increased rate)
• Secured loan: £490
• Total mortgage and loan payments: £2,054/month
• Credit card payments: £294/month

The Debt Consolidation Remortgage Solution

To address their growing financial pressure, we provided a debt consolidation remortgage tailored to combine all high-interest credit commitments into one manageable and predictable monthly payment. This solution came in the form of consolidation via a remortgage and helped simplify their financial obligations. This involved consolidating:

• £37,416 secured loan
• £4,180 Santander credit card at 30% interest
• £5,661 HSBC credit card at 29% interest

We structured a new mortgage to absorb their combined debt of £47,257, offering a single monthly repayment of £1,919.

While this method extended the repayment term, it offered them immediate relief and simplicity compared to juggling multiple debts with varying interest rates—a primary advantage achieved through remortgage and debt consolidation in this scenario.

Achieved Results

• Monthly savings of approximately £135 compared to maintaining their existing credit and mortgage arrangements
• Simplified finances by turning multiple payments into one manageable monthly mortgage payment using this combined remortgage and debt consolidation approach
• Financial certainty despite rising national interest rates
• Long-term cost of the consolidation: approximately £66,632.37

Although the couple would eventually repay more over the full term, the solution offered immediate stability and decreased financial stress—especially critical as they had no significant savings or extra income to meet the increasing obligations. The decision to remortgage for debt consolidation brought peace of mind.

“By combining the secured loan and credit cards into our mortgage, we finally have breathing room. Before, it felt like we were falling behind every month.” — Anonymous Client

Frequently Asked Questions

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

In this case, the couple cut their monthly obligations by approximately £135. Your savings from a debt consolidation remortgage will vary depending on your current debt, outstanding balances, and mortgage terms.

Can you remortgage to fund home improvements?

Yes. In fact, the couple originally used a secured loan to help finance a home extension. Consolidating that loan into a new mortgage helped lower their payments over time. This demonstrates how a remortgage for debt consolidation can also free up cash for projects.

Does remortgaging affect my credit score?

Initially, there may be a slight dip in your credit score due to credit checks and closing older accounts. However, making regular payments on time can improve your score over the long term if you use debt consolidation remortgage options responsibly.

What documents are required for a remortgage application?

You typically need: proof of income (payslips or accounts if self-employed), current mortgage details, credit reports, proof of identity, and monthly expenditure breakdowns. These are essentials for starting any remortgage or debt consolidation application with most lenders.

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

Most fixed-rate mortgages come with early repayment charges (ERCs). It’s important to check the terms or discuss with your lender before making any early payments—particularly if you are considering using remortgage for debt consolidation in the future.

Ready to Take Back Financial Control?

If you’re finding it difficult to keep up with rising mortgage rates and unsecured debt repayments, a debt consolidation remortgage could offer the solution you need. Contact our expert advisors today for a free, no-obligation consultation—and discover how you could save hundreds of pounds each month while simplifying your finances and consolidating your debt through a remortgage.

Speak to an advisor now