How a Debt Consolidation Mortgage Helped One Woman Regain Financial Stability and Buy Out Her Partner

Customer Overview

A woman in her early 40s, working in a professional capacity and based in the UK, found herself overwhelmed by significant debt and a need to buy out her ex-partner following a divorce. With high monthly payments and limited savings, she was struggling to manage financially and emotionally, seeking a sustainable solution to restructure her finances using a mortgage for debt consolidation.

The Financial Challenge

Going through a divorce brought both emotional strain and financial difficulty. The individual had accumulated over £36,000 across three separate types of credit, including high-interest credit cards and unsecured personal loans:

• Barclaycard – £10,021 at 30% interest
• Zopa Loan – £11,087 at 14% interest
• Admiral Financial Services – £15,175 at 11% interest

Monthly repayments on these commitments totaled £912. With increasing pressure and little disposable income, the client could not see an end in sight. She also needed to raise additional funds to buy out her former partner from their shared property. The situation demanded a consolidated, manageable repayment structure, and the solution was to explore debt consolidation mortgage options.

The Remortgage Solution

After assessing her income and expenses, a remortgage with a debt consolidation feature was proposed as the most feasible option. By incorporating the high-interest debts into a new mortgage arrangement, the client could manage her payments on a longer term at a lower interest rate; this is the advantage of debt consolidation with a mortgage.

The total consolidated debt of £36,283 was added to the mortgage. Though this increased the overall mortgage balance, it drastically reduced her monthly financial burdens. She was made fully aware of the long-term cost implications, including a total repayment estimate of £60,229.78—approximately £1.66 for every £1 borrowed.

This strategy allowed her to:

• Consolidate multiple debts into one manageable mortgage payment
• Secure a lower overall interest rate
• Increase monthly disposable income by approximately £466.60
• Raise the funds necessary to fully buy out her ex-partner

Results at a Glance

• Debt Consolidated: £36,283
• Previous Monthly Debt Payments: £912
• Increase in Monthly Disposable Income: ~£466.60
• Future Financial Projection: A clearer end-date and improved affordability

While the long-term cost increased due to a longer repayment period, the client chose to prioritise immediate relief and the ability to retain her home independently, all secured by the flexibility of a debt consolidation mortgage solution.

“I just couldn’t see an end to my debts. The monthly payments barely covered the interest. Now, I have a plan, I can breathe easier, and I finally have the funds I need to move forward.” – Client (Name Withheld)

FAQs: Debt Consolidation Remortgage

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

It varies by case. In this scenario, the client increased her disposable monthly income by approximately £466.60 by consolidating £36,283 of debt into her mortgage—illustrating how a debt consolidation mortgage can improve financial stability.

Can you remortgage to fund a buyout of a partner or home improvements?

Yes. Many clients choose to remortgage for various reasons, including buying out an ex-partner or carrying out home improvements, and often combine this with debt consolidation within a mortgage arrangement.

Does remortgaging affect my credit score?

It can have a short-term impact due to the credit checks and new account setup. However, by consolidating debts and making payments on time, it may improve your credit in the medium to long term, especially after taking a debt consolidation mortgage.

What documents are required for a remortgage application?

You’ll typically need proof of income (such as payslips), proof of identity, bank statements, a current mortgage statement, and details of the debts you are consolidating to arrange a debt consolidation mortgage.

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

It depends on the lender and your mortgage terms. Most fixed-rate deals involve early repayment charges (ERCs), so always check your mortgage offer before making extra payments, particularly when planning debt consolidation with your mortgage.

Take the Next Step Toward Financial Freedom

If you’re feeling overwhelmed with monthly repayments and looking for a way to increase financial flexibility—perhaps to buy out a partner, fund an improvement, or simply breathe easier—consider a debt consolidation remortgage today. This may be the right mortgage solution for debt consolidation and a path to financial relief.

Click here to use our remortgage calculator and explore your potential savings. Our advisers are ready to help you find a customised solution that fits your future goals. The calculator can help you understand how a debt consolidation mortgage could transform your finances.