Remortgage to Clear Debt: How One Professional Reduced Monthly Outgoings by Consolidating Debt

Anonymous Customer Overview

A 42-year-old professional based in the South East of England approached us seeking better financial stability. Employed in a stable industry with a consistent income, this client was struggling with growing unsecured debt, including credit cards and personal loans, and wanted to find a long-term solution to reduce monthly outgoings through a remortgage. The option of a Deal Direct debt consolidation remortgage was considered, aligning perfectly with their goals.

The Challenge: High Monthly Repayments and Increasing Debt Stress

The customer was facing multiple financial challenges:

• Monthly repayments on credit cards and loans were exceeding £800, placing tension on the monthly budget.
• High interest rates on unsecured debts were prolonging repayment timelines.
• With standard living costs rising, there was little room for savings or emergencies.
• The customer wanted to simplify their finances while reducing monthly stress and cost.

This individual asked the all-too-common question: “Can you remortgage to consolidate debt?” The answer was yes—and we had a clear, achievable path forward, involving a smart strategy linked with Deal Direct for debt consolidation remortgage options.

Our Solution: A Tailored Remortgage to Pay Off Debt

After assessing the customer’s income, current mortgage balance, and debt structure, we proposed a debt consolidation remortgage. Working with a lender offering some of the best mortgage lenders for debt consolidation, we secured a competitive fixed-rate deal over an extended term. It was an ideal approach resembling a Deal Direct strategy.

Key elements of the solution included:

• Consolidating several credit cards and loans into one low-interest mortgage payment.
• Extending the mortgage term to reduce immediate monthly outgoings.
• Locking into a fixed interest rate to guard against future market volatility.

Unlike secured loans for bad credit, the remortgage offered better value and long-term stability. We also ensured the new mortgage arrangement included clear terms and no early repayment penalties beyond the fixed period, giving the client freedom to overpay in the future without worrying about penalties common in some Deal Direct scenarios.

Results: Simpler Finances and Significant Monthly Savings

The remortgage solution resulted in substantial benefits:

• £500+ monthly savings compared to original monthly outgoings on unsecured debts.
• One affordable monthly mortgage payment instead of multiple bills, enhancing their deal directly through a consolidation strategy.
• Improved credit utilisation, which could benefit future credit scores.
• Peace of mind and reduced financial stress.

“This has taken a huge weight off my shoulders. I can finally see a clear financial path forward instead of juggling bills every month,” the client shared following the remortgage completion.

Frequently Asked Questions

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

Monthly savings vary depending on the size of your debts and current mortgage rate, but we’ve often helped clients reduce their monthly outgoings by £300–£600 through a remortgage to clear debt via an effective debt consolidation remortgage. This method resembles a Deal Direct debt strategy.

Can you remortgage to fund home improvements or consolidate debt?

Yes. A remortgage can be used for various purposes, including debt consolidation and home improvements. Lender criteria will depend on your home’s equity and credit profile. Some may directly deal with your unique financial needs.

Does remortgaging affect my credit score?

A remortgage may slightly impact your score during the application process, but consolidating debts and reducing credit utilisation often improves your score over time.

What documents are required for a remortgage application?

You’ll generally need proof of income (payslips/self-employment accounts), a credit report, photo ID, and details of your existing mortgage and debts. Engaging directly with lenders might streamline this process.

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

That depends on the lender and your mortgage product. Some allow overpayments up to a certain threshold annually without penalties. Full early repayment during the fixed term usually incurs charges, so we ensure customers are fully informed before proceeding. It aligns with practicing financial dealings directly.

Ready to Regain Control of Your Finances?

If you’re wondering whether a debt consolidation mortgage is right for you, our expert advisers are here to help. A Deal Direct debt consolidation remortgage could be one of the options to consider tailored to your situation. We work with lenders across the UK to bring you the most competitive options.

Call us today on 02392 006428 to speak to a qualified adviser, or request a callback online.

Take the first step toward financial freedom today.