Remortgage to Pay Off Debt: How One Professional Reduced Monthly Outgoings by Over £2,000

A Working Professional Taking Control of Her Finances

A hardworking mother in her 40s, employed in a well-paying professional role and living in the UK, found herself overwhelmed by credit debts. Despite earning a strong salary, her monthly repayments on various high-interest credit cards and personal loans consumed the majority of her income. She was left with little to no disposable income at the end of each month, creating ongoing financial stress and limiting her ability to save or plan for the future.

Challenge: Multiple High-Interest Debts and Financial Pressure

Over time, this customer had accumulated a significant amount of unsecured debt, totaling £85,562. These debts included several credit cards with interest rates as high as 34%, as well as personal loans with substantial monthly repayments. Even though she was managing to make all her payments on time, the reality was that her debt balances weren’t decreasing due to the high interest rates, and her credit score was being negatively impacted.

• Monthly debt repayments: £2,114
• Credit card interest rates: Up to 34%
• Total expected repayment cost (if left as-is): £114,214 over several years
• Emotional and financial toll of managing multiple credit lines

Solution: A Smart Debt Consolidation Remortgage Strategy

Through a comprehensive financial review, we advised the customer to consolidate her existing debts into her mortgage. By remortgaging and including all the large, high-interest debts within the new mortgage balance, we significantly reduced her monthly outgoings.

The remortgage provided:

• A new repayment structure combining mortgage and unsecured debts
• One simple monthly payment with a lower interest rate
• Clear understanding of the long-term costs and benefits

She retained a small credit card and a couple of minor loans for independent repayment, choosing only to consolidate the more burdensome, high-interest debts.

Considerations We Discussed Before Proceeding:

• The long-term cost of turning unsecured debts into a secured mortgage
• Risks of increasing the mortgage term
• The importance of budgeting to prevent future debt accumulation
• Leaving her £6,000 emergency savings untouched for peace of mind

Results Achieved

• Additional monthly disposable income: £2,250.32
• Simplified repayments through a single mortgage payment
• Improved credit utilisation, creating potential for future credit score improvement
• Increased ability to overpay the mortgage and reduce the term

Though she will repay more over the life of the mortgage (an additional £38,086.36), the immediate cash flow relief significantly improved her day-to-day financial health.

A Word from the Client

“The monthly pressure was overwhelming. Even though I was earning well, I had nothing left at the end of the month. This remortgage has completely changed things—I finally feel like I’m breathing again and can even plan to overpay the mortgage.” – Satisfied Customer, UK

Frequently Asked Questions

Can I remortgage to consolidate debt?

Yes, many homeowners choose to remortgage to consolidate high-interest credit cards and personal loans into a lower-interest mortgage. This simplifies payments and often reduces overall monthly outgoings.

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

This varies case by case, but in this example, the client saved approximately £2,250.32 per month in outgoings by consolidating debts.

Does remortgaging affect my credit score?

Consolidating debt into a mortgage can positively impact your credit score by reducing the number of active unsecured debts and improving your credit utilisation ratio—assuming all payments continue to be made on time.

What are the risks of remortgaging to consolidate debt?

The main risk is that you are converting unsecured debt into secured debt against your home. If mortgage payments are missed in the future, your property could be at risk. Additionally, you may pay more interest in the long run.

What documents do I need for a remortgage application?

Commonly required documents include:

• Proof of identity (passport or driving license)
• Proof of income (payslips, bank statements)
• Current mortgage statement
• Breakdown of debts to be consolidated

Can I repay my new mortgage early?

Most mortgage deals come with early repayment terms. If you’re on a fixed-rate, overpayment limits (such as 10% annually) may apply without penalty. Always check your specific mortgage terms.

Ready to Take Control of Your Finances?

If you’re feeling squeezed by unmanageable credit repayments each month and want to explore whether a debt consolidation mortgage might make sense for you, we’re here to help. Our tailored remortgage advice considers your full financial situation—putting clarity, flexibility, and real savings back into your hands.

Get in touch for a free consultation today