Customer Overview
A middle-aged professional couple from southern England sought financial clarity and better affordable terms as their fixed-rate mortgage deal was approaching its end. With one partner employed full-time and the couple jointly owning a home, their financial goal was to streamline repayments and reduce their monthly outgoings by consolidating their existing secured loan into a new Halifax debt consolidation remortgage deal.
The Challenge: Managing Multiple Debts and a High-Interest Secured Loan
The main challenge was the presence of two major financial commitments:
- A capital repayment mortgage nearing the end of its fixed term
- A high-interest secured loan also tied to their property
The clients were concerned about rising interest rates and aimed to act proactively by locking in a new fixed rate. Importantly, they were also looking to reduce the overall mortgage term while ensuring that monthly payments remained manageable within their budget of £1,700–£1,750.
Another issue was with their current lender, NatWest, whose additional borrowing options required separate legal representation—which would drive up costs unnecessarily.
The Solution: A Competitive Debt Consolidation Remortgage Package
After comprehensive market analysis and factoring affordability criteria, Deal Direct Financial Solutions recommended a remortgage with Halifax. This mortgage offer provided:
- Loan amount: £182,500
- Term: 11 years
- Fixed rate: 4.01% until December 2030
- Initial monthly payment: £1,715.75
Halifax emerged as the most suitable option after evaluating several other lenders. Unlike many rivals, Halifax excludes the secured loan’s monthly cost in their affordability calculations—significantly improving eligibility. They also consider overtime income, adding flexibility and accuracy to the affordability assessment.
This addressed the client’s dual goal of
- Clearing the £55,482 secured debt along with the existing mortgage balance of £126,209
- Reducing the total mortgage term while staying within budget
Why the 5-Year Fixed Term?
After weighing both 2-year and 5-year fixed options, the clients opted for the longer-term deal to provide payment stability amidst economic uncertainty. A 5-year fix helped them lock in the best Halifax debt consolidation remortgage rate with a modest product fee that was added to the mortgage to ease upfront costs.
Results: Improved Financial Management and Long-Term Savings
By choosing this path:
- £55,482 of debt was consolidated into one manageable mortgage
- A single fixed monthly payment simplified budget tracking
- Projected total repayment on the consolidated debt, including fees, was around £72,681.42
- They secured peace of mind with consistent payments for the next five years
- No early repayment charges apply after December 2030, offering future exit flexibility
“Choosing to consolidate our secured loan into the mortgage gave us structure and stability—something we really needed. Having it all under one roof just makes budgeting easier.” — Anonymous Client
Frequently Asked Questions (FAQs)
Take Control of Your Finances Today
If you’re considering a debt consolidation remortgage and want to simplify your finances, reduce monthly payments, or shorten your mortgage term—our expert advisors at Deal Direct can help. We search across the market to find the best mortgage lenders for debt consolidation suited to your situation.
Ready to learn how much you could save? Try our or for a free, no-obligation consultation.
