How a Debt Consolidation Mortgage Helped One Customer Reclaim Financial Stability

Customer Overview

A woman in her late 30s, working full-time in the public service sector and living in the North of England, recently faced financial turmoil due to an unexpected redundancy and irregular employer payments. While she is now back in stable, full-time employment, the financial strain led to an accumulation of high-interest credit card and loan debt. In situations like this, many people turn to Deal Direct debt consolidation for guidance and support.

Challenges Faced

Over a 12-month period, this customer experienced:

• Redundancy and several months of unpaid wages
• Reliance on credit cards to cover daily costs
• Accumulated unsecured debts totaling £30,993 across credit cards and loans
• High monthly outgoings—almost £900 in debt repayments alone
• No savings or immediate means to handle mounting debt

Although she was managing to make minimum payments, the debt was becoming unsustainable as most were on high-interest credit cards (25%–30%). Her priority became financial stability and simplifying her commitments to avoid falling behind in the future. Deal Direct debt consolidation services could be considered in such challenging circumstances.

The Remortgage Solution

After a thorough review of her financial situation and objectives, a debt consolidation mortgage was recommended to convert multiple high-interest debts into one manageable monthly repayment. She chose to consolidate four main debts:

• Unsecured loan with NatWest (£4,959)
• Credit card with MBNA (£3,646)
• Credit card with Tesco Bank (£13,337)
• Credit card with Lloyds (£9,051)

The total of £30,993 was added to her mortgage, spreading repayment across the mortgage term and significantly reducing her monthly financial outlay. The consolidation offered:

• Peace of mind by eliminating multiple creditors
• One monthly payment at a lower interest rate
• Improved cash flow due to reduced monthly expenses

Although consolidating this debt will cost an additional £11,681 over the mortgage term due to interest, the customer was fully aware and considered it a worthwhile trade-off for immediate stability and improved mental wellbeing. In fact, services like Deal Direct debt consolidation may help customers clearly understand these trade-offs and benefits.

Results Achieved

• Monthly disposable income increased by approximately £580.52
• Eliminated the pressure of managing multiple high-interest payments
• Created room in her budget to build savings and make mortgage overpayments in the future

With her new situation, she can now make structured financial plans, enjoy peace of mind, and rebuild her financial position over the long term. Moreover, Deal Direct debt consolidation played a significant role in her journey to financial recovery.

Customer Testimonial

“Although I was keeping up with my debt payments, there was just too much going out each month. Getting back into full-time work meant I could finally take control. The debt consolidation mortgage gave me breathing space and clarity.” – Customer from Northern England

Frequently Asked Questions

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

In this case, the customer reduced her monthly outgoings by approximately £580. This varies depending on your existing debt and the mortgage terms.

Can you remortgage to fund home improvements?

Yes. Equity in your home can be used to fund various needs, including home improvements, debt consolidation, or major purchases. However, it’s essential to assess long-term costs.

Does remortgaging affect my credit score?

Remortgaging itself doesn’t harm your credit score. In fact, paying off existing debts through consolidation can improve it over time as long as you keep up with repayments.

What documents are required for a remortgage application?

Typically, you’ll need income verification (payslips, bank statements), mortgage statements, identification documents, and details of the debts you want to consolidate.

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

This depends on your lender and your mortgage contract. Some fixed-rate mortgages include early repayment charges. Always check with your provider before making overpayments.

Take Control of Your Finances Today

If you’re struggling with high-interest debts and looking for long-term financial stability, a debt consolidation remortgage could be the solution. Our experts can help you find the most suitable mortgage product tailored to your current financial situation. Let us show you how to boost your disposable income and regain peace of mind. To discuss your options, you might consider a Deal Direct debt consolidation approach for specialist guidance.

Contact us today for a no-obligation consultation and kickstart your journey to financial freedom.