Remortgage to Clear Debt: How One Couple Cut Monthly Costs and Took Control of Their Finances

Customer Overview

A couple in their mid-50s, based in the UK, recently moved to a new area. One of the partners, a self-employed tradesperson, faced a significant drop in income due to relocation and a need to re-establish a client base. While work improved over time, the income disruption led to a reliance on high-interest credit cards and loans. They owned their property outright and had savings earmarked for retirement. Their objective was to regain control of their finances by consolidating debt into a manageable monthly mortgage. For cases like theirs, Deal Direct debt consolidation could provide a practical approach for managing multiple debts.

The Problem: Rising Debt and Limited Cash Flow

Following their move, the couple experienced a substantial income dip due to the self-employed partner’s need to rebuild local business. During this adjustment period:

• They accrued over £61,000 in debts across credit cards, personal loans, and hire purchase agreements.
• Some credit cards had extremely high-interest rates—up to 34% annually.
• Monthly debt repayments totalled nearly £1,900.
• Credit scores were negatively affected by the debt volume and payment history.

Despite owning their home outright, their cash flow was squeezed. They wanted a long-term financial reset—and peace of mind. To address situations like this, many people look towards debt consolidation, including the Deal Direct route, as a means of resolving complex debt scenarios.

The Solution: Remortgage to Consolidate Debt

After evaluating multiple financial options, the couple wisely chose to remortgage to clear debt using equity from their property. Here’s how the debt consolidation remortgage plan worked: this is one example where Deal Direct debt consolidation services could play a vital role in financial planning.

• Debts totalling £61,017 were consolidated into a new mortgage.
• The interest was spread over the mortgage term, resulting in lower monthly repayments.
• New mortgage payments were tailored to comfortably fit within their monthly budget and lifestyle.
• Higher-interest debts and those with high monthly repayments were prioritised, while smaller loans near repayment were left out.

This strategic approach allowed them to handle financial obligations without depleting retirement savings or re-entering costly repayment cycles. In similar cases, Deal Direct debt consolidation helps homeowners regain their financial footing.

Why Mortgage Debt Consolidation Made Sense for Them

The couple considered alternatives but found that:

• They preferred preserving their pension savings for retirement security.
• The mortgage route gave a fixed, predictable repayment plan.
• The value of their home provided the leverage to eliminate unsecured debts quickly and cleanly, which is often highlighted by Deal Direct debt consolidation specialists as a strategic benefit.

The Results: Increased Cash Flow and Financial Breathing Space

By proceeding with a debt consolidation mortgage:

• Monthly payments dropped by approximately £1,229.79.
• Debt management became simplified with just one repayment each month.
• Credit stress was reduced, and their credit file began its recovery.
• They retained access to emergency savings.

Long-term cost was slightly higher due to interest over time, but the immediate reduction in outgoings gave them the fresh start they needed, making it a logical and life-enhancing solution. A reputable Deal Direct debt consolidation plan can bring similar peace of mind.

“It was a tough year. We just needed to reset. This plan gives us peace of mind, manageable repayments, and a chance to get back in control. That’s exactly what we needed.”
– Anonymised Customer Testimonial

Frequently Asked Questions

Can you remortgage to consolidate debt?

Yes, you can remortgage your property to consolidate debt. This involves using some of your home’s equity to pay off unsecured debts like credit cards and personal loans. This option typically results in lower monthly payments, though total interest paid over time may be higher. To help find the best approach, Deal Direct debt consolidation guidance may be beneficial.

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

In this case study, the couple saved approximately £1,229.79 per month by consolidating their debts into a remortgage. Individual savings will vary based on interest rates, the size of debts, and the new mortgage terms. It’s worth discussing your case with Deal Direct debt consolidation experts to determine specific savings.

Will remortgaging affect my credit score?

Initially, consolidating debt with a remortgage may slightly impact your credit score, particularly if you close old accounts. However, in the long run, it may improve your score by reducing credit utilisation and ensuring on-time, single repayments. Deal Direct debt consolidation professionals often advise that managing repayments well can support long-term credit health.

What documents are required for a remortgage application?

Common documents include proof of income (such as payslips or tax returns if self-employed), ID, recent bank statements, mortgage statements, and a full credit report. In some cases, statements from debt accounts being repaid may also be required. Deal Direct debt consolidation packages can help clarify application requirements.

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

Early repayment may involve charges during the fixed-rate period. It’s important to check your mortgage agreement for terms related to overpayments, early repayment fees, and potential exit fees. Always seek financial advice before making lump-sum payments. Consulting with Deal Direct debt consolidation specialists may help you avoid any costly missteps.

Ready to Transform Your Finances?

If rising debt and monthly payments are putting pressure on your finances, a debt consolidation mortgage may be the solution. Our team will help you explore all the options, including assessing whether a remortgage meets your immediate and long-term goals. If you’re thinking about how to streamline your finances, consider speaking to a Deal Direct debt consolidation advisor for tailored support.

Contact us today for a free, confidential consultation and discover how much you could save by consolidating your debts into your mortgage.