How a Debt Consolidation Remortgage Helped a Working Professional Regain Financial Control

Customer Overview

A 60-year-old professional from the South of England, working full-time, recently approached us as her existing fixed-rate mortgage with her current lender was ending. She had two main objectives—consolidate high-interest credit card debt and release funds to renovate her bathroom, all while maintaining affordable monthly payments. In her search for options, a Barclays debt consolidation remortgage emerged as a feasible choice.

Challenges: Managing Debt and Lending Past Retirement Age

Our client was paying off multiple credit cards with high interest rates, accumulating unsustainable monthly payments. Additionally, her existing lender, Accord Mortgages, would not extend new lending terms past age 70 using employed income, which created a major roadblock to restructuring her mortgage effectively. She desired a lender that could provide flexibility into later life, offer competitive fixed rates, and enable her to combine debts and release capital for home improvements. This is where a Barclays remortgage for debt consolidation stood out.

Goals Included:

• Consolidate £15,990 worth of credit card debts
• Raise £10,153 for a new bathroom
• Secure a 2-year fixed-rate mortgage fitting within a £1,150–£1,200 monthly budget
• Return to a reputable high street lender

Our Mortgage Solution: A Tailored Debt Consolidation Remortgage

After reviewing options from several lenders, including Halifax, Nationwide, and Virgin Money, we recommended Barclays Bank Plc. Barclays met all affordability requirements and crucially, was willing to consider employed income beyond age 70. This flexibility, vital for a Barclays debt consolidation remortgage, made them the ideal fit for consolidating debt through a remortgage.

Key Mortgage Details:

• Loan Amount: £183,500
• Rate: Fixed at 4.11% until December 2027
• Term: 25 years
• Monthly Payment: £985.23 initially, increasing to £1,172.25 after rate period
• Overpayment Flexibility: 10% annually without penalty
• Early Repayment Charge: 2% until 31 Dec 2027 (~£3,690)

The arrangement also allowed her to roll in arrangement and adviser fees, helping with immediate affordability while securing long-term structure.

Results and Benefits Achieved

• Debt Consolidation: Cleared £15,990 in high-interest debt, now repaid at a much lower mortgage rate
• Home Improvement Funding: Released £10,153 to upgrade her bathroom
• Simplified Finances: Merged multiple monthly payments into one predictable mortgage payment
• Affordability Met: Monthly mortgage payments fell under her preferred budget range
• Long-Term Flexibility: Access to overpayment options and ability to port mortgage if needed

“Barclays was exactly what I needed—they accepted my income beyond 70, didn’t count my credit card debt against me in the affordability checks, and I already bank with them, which made the process seamless.” – Satisfied Client

Frequently Asked Questions

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

In this case, our client consolidated £15,990 of debt and reduced the monthly burden by including it in her mortgage at a much lower interest rate with Barclays debt consolidation remortgage assistance. This resulted in predictable, manageable payments and a significant interest cost reduction over time, even factoring in the longer term.

Can you remortgage to fund home improvements?

Yes, many lenders allow you to raise additional capital for home improvements. In this scenario, £10,153 was successfully raised for a new bathroom.

Does remortgaging affect my credit score?

Initially, your credit score may dip due to the application and credit checks, but in the long run, consolidating debts can improve your score by reducing utilizable credit and ensuring consistent payments.

What documents are required for a remortgage application?

Typically, lenders require proof of income (payslips or accounts), bank statements, existing mortgage details, proof of identity, and credit commitments. Additional paperwork may apply depending on your circumstances.

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

Most fixed-rate mortgages have early repayment charges within the fixed period. In this case, an early repayment charge of 2% applies until December 2027. Always consult your adviser before making early payments.

Take Control of Your Finances Today

If you’re looking to simplify your finances, consolidate debt, or raise capital for home improvements, a debt consolidation remortgage with Barclays could be the solution. Our expert advisers can access the entire market to find the most suitable options—just like we did for this client with a Barclays remortgage strategy.

Contact us today for a no-obligation consultation and let us help you achieve financial freedom.