Anonymous Customer Case Study
A 42-year-old professional from Hampshire contacted us after reaching the end of his fixed mortgage term. With a full-time job and a growing concern over high-interest debt, he sought a practical solution to manage monthly payments and consolidate his existing financial obligations using Barclays debt consolidation remortgage services.
Customer’s Challenges
Several key challenges prompted his decision to explore remortgaging options:
- His current fixed rate mortgage was ending in just a few months.
- He needed a lender flexible enough to include repayment of a secured loan in the new mortgage—which his current lender wouldn’t allow without hiring a solicitor.
- He wanted to consolidate over £103,000 in unsecured debts, primarily credit cards and loans, to reduce monthly outgoings.
- It was important to keep monthly mortgage payments under £2,500 for personal affordability.
The Remortgage Solution
After reviewing several options, we recommended a debt consolidation remortgage with Barclays, one of the few lenders offering both competitive rates and flexibility in affordability assessments. The Barclays debt consolidation remortgage offered key details including:
- Fixed 2-year rate at 3.87% with no tie-in beyond the fixed term
- £410,000 loan over 20 years on a capital and interest repayment basis
- No fees for legal or valuation services, and the arrangement fee of £999 was added to the mortgage
- Lender’s affordability calculations ignored the commitments being repaid, enabling full consolidation
Why This Product Was Chosen
- The customer preferred a 2-year fixed rate, expecting interest rates to decline in the near future
- This option allowed him to fix a manageable monthly payment now and reassess in two years
- Lenders like HSBC and NatWest offered lower rates but couldn’t meet the borrowing requirements particular to a Barclays debt consolidation remortgage.
Achieved Results and Financial Benefits
By opting for this remortgage to pay off debt, the customer achieved:
- Monthly payments of £2,462.66—comfortably under his £2,500 ceiling
- Full consolidation of £103,383 in loans and credit card debt into a single, lower-interest product
- Improved cash flow and peace of mind from having one predictable monthly payment
- Capital buffer of £1,085 added to the loan in case balances were slightly higher
While we did inform the customer that turning short-term debts into long-term secured loans would increase overall interest costs (approximately £172,649.61 over 20 years), he prioritized immediate affordability and peace of mind.
“I feel a lot better now that the monthly payment is manageable, and all my debts are under one roof. I can finally breathe easier.”
Frequently Asked Questions (FAQs)
Ready to Consolidate Debt and Reduce Monthly Payments?
If you’re wondering “can I remortgage to consolidate debt?”—the answer is yes, and we’re here to help. Our expert advisers compare hundreds of deals—from high-street banks to specialist lenders—to find the best remortgage for your needs.
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