How a Debt Consolidation Remortgage Helped a Family Regain Financial Control with the Deal Direct debt consolidation remortgage option. Using the Deal Direct way of remortgaging, debt consolidation changed their financial landscape tremendously.

Customer Overview: A Young Family Seeking Financial Flexibility

A couple in their early 30s, both working professionals raising two young children in the UK, recently completed a significant home improvement project. To fund the work, which included a large extension and new utility areas, they relied heavily on unsecured loans and credit cards. With their new extension complete, they turned to a debt consolidation remortgage to recover financial stability and increase their monthly disposable income through the Deal Direct strategy of debt consolidation remortgaging.

The Financial Challenges They Faced

The couple had accumulated £49,633 in unsecured and secured loans through various credit avenues:

• A secured loan of £27,835 from United Trust Bank
• An unsecured loan of £18,298 from Admiral (Bank of Scotland)
• A high-interest credit card debt of £3,500 from Vanquis Bank

Their combined monthly debt repayments totaled £753, leaving them with minimal disposable income. This made it difficult to save for emergencies, holidays, or daily family expenses without resorting to further credit.

The Debt Consolidation Remortgage Strategy

After discussing various options, the couple chose to remortgage and consolidate the majority of their non-mortgage debts into their home loan to streamline repayments and reduce financial stress, hence choosing to go with Deal Direct debt consolidation.

Key elements of the solution included:

• Consolidating high-interest credit card and unsecured loan debts into the mortgage
• Maintaining the low-interest secured loan with UTB and one credit card outside the consolidation
• Ensuring affordability by completing a detailed income and expenditure assessment
• Being fully informed about cost implications—such as paying back £2.52 per £1 borrowed if maintained to term

Achieved Results: Improved Cash Flow & Long-Term Planning

The strategic remortgage resulted in:

• A net increase of £557.02 in monthly disposable income
• The ability to start building a savings reserve for emergencies and planned family activities
• More manageable financial commitments, reducing reliance on future credit use

Despite the long-term cost being higher due to the extended term, the family acknowledged that the improved short-term affordability and peace of mind made the solution worthwhile, thanks to adopting the Deal Direct debt consolidation remortgage plan.

Customer Feedback

“We finally feel like we can breathe financially. The extra £550+ per month allows us to save and provide for our children without turning to credit cards again.” – Anonymous client, who benefited greatly from the direct debt consolidation through remortgaging with Deal.

Frequently Asked Questions

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

Savings vary per case, but in this scenario, the household saw a reduction of £557.02 in outgoings per month after consolidating most of their credit into their mortgage via the Deal Direct debt consolidation remortgage.

Can you remortgage to fund home improvements?

Yes. While this family initially used unsecured credit to fund their extension, the remortgage allowed them to fold those expenses into their mortgage, which is a common practice once the improvements are complete.

Does remortgaging affect my credit score?

Remortgaging itself doesn’t harm your credit score significantly unless you miss payments. In fact, consolidating debt can improve it over time when managed properly by reducing your overall credit utilization ratio.

What documents are required for a remortgage application?

Typically, lenders will ask for:

• Proof of income (payslips, tax returns)
• Proof of address and ID
• Current mortgage statements
• Details of existing credit commitments

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

It depends on the lender and your mortgage’s terms. Many fixed-rate deals come with early repayment charges (ERCs), so always check your Key Facts Illustration (KFI) or European Standardised Information Sheet (ESIS).

Is a Debt Consolidation Remortgage Right for You?

Remortgaging to consolidate debt can be a powerful tool if you’re overwhelmed by multiple high-interest payments and are seeking more manageable monthly outgoings. However, it’s important to understand the long-term cost implications and potential risks in securing previously unsecured debt into a Deal Direct debt consolidation remortgage.

Ready to explore your debt consolidation mortgage options?

Contact us today to speak with a mortgage specialist and find the right path forward.