Debt Consolidation Mortgage: How a Self-Employed Tradesman Reduced His Monthly Outgoings

Customer Overview: Self-Employed in Construction, North of England

Our featured customer is a self-employed tradesman in his mid-40s, based in the North of England. With over 15 years of experience in the construction industry, he owns his residential property outright in his own name. Recently, he sought financial help to streamline his expenses and refinance existing debts, including credit cards and a car loan, while also aiming to finance home improvements.

Customer Challenges: Managing Multiple Debts and Improving Cash Flow

This customer faced several financial pressures:

• Multiple existing debts: Credit card balances and a car loan translating into high, scattered monthly payments.
• Late mortgage payments: Due to cash flow issues when a client failed to pay, which resulted in missed mortgage payments on his variable-rate deal with Halifax.
• Need for home improvements: Requiring new funds to invest in his property, but limited by existing credit concerns.
• Desire for simplicity: Wishing to consolidate liabilities into a single, manageable monthly repayment.

Mortgage Solution: Tailored Debt Consolidation Secured Loan

After a thorough review of the customer’s needs and circumstances, including an up-to-date assessment of his property value and outstanding mortgage, our advisor recommended a debt consolidation mortgage through a specialist secured loan lender.

• Consolidation strategy: Instead of holding separate debts (mortgage, car, credit cards), combining all liabilities into one secured loan based on home equity.
• Flexible lender selection: Since recent late payments ruled out some high-street remortgage options, we focused on specialist secured lenders who accommodate clients with temporary credit challenges.
• Sufficient equity: With the property valued at around £130,000 and a relatively low outstanding mortgage balance of £32,000, the customer had ample equity to borrow the needed £50,000.
• Specialist support provided: Step-by-step guidance, including a list of required documents and ongoing updates.

This approach not only addressed immediate financial pressures, but also provided funds for home improvements and simplified monthly budgeting.

Results Achieved: Lower Outgoings and Improved Peace of Mind

• Simplified repayments: All debts consolidated into one affordable monthly payment, managed by a single lender.
• Cash flow relief: By paying off high-interest debts, the customer lowered his total monthly outgoings and improved his financial flexibility.
• Home improvement funds: Access to a lump sum for property upgrades—all while optimising his debt structure.
• Access despite recent arrears: Supporting the customer through minor credit difficulties with practical, real-world lending solutions.

Customer Testimonial

“I want to get rid of them all and have just one monthly payment. That would be better for me. The team made it sound realistic and I look forward to hearing from them.” – Self-employed construction professional

Frequently Asked Questions

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

By moving all high-interest debts into a single secured loan, borrowers can often significantly reduce their total monthly payments. Actual savings depend on your outstanding balances, existing interest rates, and the terms of your new loan. Use our remortgage calculator for an estimated snapshot.

Can you use remortgaging or a secured loan to fund home improvements?

Yes. Secured loans or remortgaging allow you to borrow against your home’s equity to fund renovations, extensions, or other upgrades, often at lower rates versus unsecured borrowing.

Will remortgaging or a secured loan affect my credit score?

Initially, your credit score may dip due to the lender’s credit search and closing old accounts. However, if you keep up with the new consolidated payments, your rating should recover and may even improve over time.

What documents do I need to apply for a debt consolidation mortgage or secured loan?

Typically, you’ll need:

• Proof of identity (passport or driving licence)
• Proof of income (recent payslips or self-assessment documents)
• Mortgage statement and property value estimate
• Details of all debts to be consolidated
• Payment profile from your existing mortgage provider if you’ve had arrears

Can I pay off a fixed-rate mortgage or secured loan early?

This depends on your specific loan terms. Some fixed-rate products may have early repayment penalties. Always discuss this with your broker before committing to any remortgage or loan.

Ready to Consolidate Your Debts and Simplify Your Finances?

If you’re juggling multiple debts and looking for better monthly cash flow, our team can help you find the right debt consolidation mortgage or secured loan. Contact us today for a free, no-obligation consultation, and take the first step toward financial peace of mind.