Anonymous Customer Overview
A married couple in their late 40s from the South of England, both employed in full-time roles, were facing the financial strain of multiple unsecured debts while planning for upcoming home improvement work. With a fixed monthly budget and a mortgage deal nearing its end, they sought a solution, such as a Kensington debt consolidation remortgage, to free up essential cash flow and stabilise their financial journey over the next two years.
The Financial Challenge
The couple faced a multifaceted financial challenge:
- A mortgage deal that was ending soon, requiring early planning to avoid higher future rates.
- Unsecured debts totalling £87,874 adding pressure to their monthly finances.
- Home improvement projects requiring an additional £13,568.
- A strict monthly mortgage budget of £2,100 amid rising interest rates.
The goal was to remortgage in a way that allowed the consolidation of unsecured debts and the release of funds for home improvements, without overextending their monthly budget or compromising their future affordability.
The Debt Consolidation Remortgage Solution
After thoroughly reviewing the couple’s income, expenses and financial goals, we recommended a debt consolidation remortgage through Kensington Mortgage Company Limited, the couple’s existing mortgage lender. Kensington emerged as the most suitable option due to their:
- No debt-to-income ratio restrictions, crucial for clients with high existing credit commitments.
- Willingness to assess employed income beyond age 70, vital for long-term affordability.
- Ability to offer a 2-year fixed rate at 5.54% over a 17-year term to maintain budget compliance.
Why a 2-Year Fixed Rate?
The couple opted for a 2-year fixed-rate term to retain flexibility in case of interest rate changes or improved financial standing within that period, and they found Kensington’s debt consolidation remortgage to be well-structured. The lender’s product came with zero arrangement, legal, or valuation fees, allowing them to keep initial costs low.
Loan Breakdown:
- Total Loan: £276,000
- Allocated to repay existing mortgage: £172,063
- Debt consolidated: £87,874
- Home improvements: £13,568
- Initial monthly mortgage payment: £2,091.63
This kept them within their monthly budget while eliminating the need to juggle multiple high-interest unsecured debts.
The Results: Reduced Stress and Greater Financial Control
Through the remortgage, the couple achieved significant consolidation and clarity in their financial picture:
- Unsecured debts of nearly £88,000 were consolidated into the mortgage.
- Freed up monthly cash flow previously reserved for high-interest credit repayments.
- Secured funding for essential home improvements without resorting to higher-rate loans.
- Stuck to their monthly affordability target through a well-structured 17-year term.
They now plan to reassess their mortgage options in two years, with the goal of switching to a high street lender under more favourable terms.
“We’re now in a better place. The debt is consolidated, and we’ve got breathing room again. We’re looking forward to reviewing everything in two years and hopefully reducing our term again.” – Anonymous Client
Frequently Asked Questions
Start Your Journey to Financial Freedom
If you’re juggling multiple debts or looking to simplify your financial commitments, a debt consolidation mortgage may be the solution. Our expert advisors at Deal Direct Financial Solutions are here to explore the most suitable options based on your individual circumstances, including Kensington debt consolidation remortgage options.
() today to book your free, no-obligation consultation and take the first step toward greater financial control.
