How a Debt Consolidation Mortgage Helped One Man Regain Control of His Finances

Anonymous Client Profile

A 50-something retired professional from the northwest of England was facing mounting pressure from credit card debt. Living on a limited income and grappling with the high cost of living, the client had maxed out several credit cards, most of which had reverted to high interest rates after introductory 0% periods. Although he remained diligent in making monthly payments, they only covered the interest, not reducing the outstanding balances.

Key Challenges

• High-interest credit card debt: Interest rates ranged from 13% to 40%, with some debts set to continue for up to a decade.
• Growing monthly outgoings: Over £1,350 was being paid monthly toward debts, leaving just £54 in available income after basic living expenses.
• No emergency savings: With no savings to lean on, the client was financially vulnerable and unable to make headway.
• Personal recovery journey: Some debts were accrued due to gambling, which has now stopped. The client has self-excluded from gambling platforms and committed to a more stable financial path moving forward.

The Debt Consolidation Mortgage Solution

After thorough discussions and a detailed review of income and expenditures, a debt consolidation mortgage was proposed. The client consolidated £38,469 worth of unsecured credit card and overdraft debt into his mortgage. While this increased the long-term interest payable — £81,554.28 total repayment — the restructuring delivered immediate and impactful benefits:

• Lower combined monthly payment: Debt that previously required £1,356 per month was now rolled into the mortgage with a significantly lower monthly commitment.
• Increased disposable income: The client’s available income jumped by £978.10 per month, offering real financial breathing space.
• Structured repayment plan: Instead of variable credit card terms, all debt now sits within a fixed mortgage term — ensuring a clear endpoint.
• Reduced financial stress: With just one repayment to manage, budgeting is simpler and more predictable.

Positive Outcomes Achieved

Thanks to the new mortgage and financial plan, the client is now in a stable position where he can:

• Build savings instead of accruing more debt
• Address future expenses without relying on credit
• Fully repay a portion of remaining smaller debts using increased monthly income

He also has the satisfaction of knowing the root cause of the debt — gambling — has been addressed. Self-exclusion measures are in place, and with financial relief in hand, he is on track for a brighter financial future.

Client Testimonial

“I haven’t missed a payment, but I was stuck just paying interest every month. Now I can finally see a finish line and have money left over. This remortgage was exactly what I needed to get out of the cycle.”

Frequently Asked Questions

Can you remortgage to consolidate debt?

Yes, this is a common strategy. By rolling high-interest credit card or loan debt into a mortgage, homeowners can often secure lower interest rates and simplify monthly payments — but this does increase the total repayment over time.

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

In this case, the client saved approximately £978.10 per month in disposable income. Actual savings vary based on debt amounts, interest rates, and new mortgage terms.

What are the risks of a debt consolidation mortgage?

Consolidating unsecured debt into a mortgage makes it secured against your home. While it lowers monthly payments, the total interest paid over the term may increase. If mortgage payments are missed, you could lose your home.

Does remortgaging affect my credit score?

Initially it may, due to a hard credit check and changes in your credit mix. However, consolidating and successfully managing debt can improve your score over time.

What documents are required for a remortgage application?

Typically, you’ll need proof of income (e.g., payslips or pension info), identification, mortgage statements, and details of current debts you wish to consolidate.

Conclusion and Next Steps

If you’re burdened with high-interest debts and struggling to manage them each month, it might be time to explore a debt consolidation mortgage. With the right advice and strategy, you can move toward greater financial freedom — just like this client did.

Ready to take control of your finances?

Contact us today to speak with one of our mortgage consultants and see what’s possible for your situation.