Customer Overview
A couple in their 50s from the South of England, working in stable professional roles, were nearing the end of a low fixed-rate mortgage.
With rising interest rates on the horizon and several unsecured debts, they sought to remortgage to clear debt while maintaining long-term financial security.
The Challenge: Mounting Debts and Expiring Rate
The couple’s fixed-rate mortgage at 1.42% was ending in just three weeks. They were concerned about:
- Moving onto a costly variable interest rate with their lender.
- Managing over £27,000 of unsecured debts tied to credit cards and loans.
- Remaining on track to repay their mortgage within the original term of 9 years and 11 months.
- Finding a quick yet suitable solution to consolidate debt into one affordable monthly payment.
The Solution: Remortgage to Consolidate Debt with Same Lender
Given the tight timeline and need for swift action, a full remortgage with a new lender wasn’t viable. Instead, the solution involved working with the existing lender, NatWest, to secure a rate switch and further advance, resulting in a combined mortgage product that:
- Fixed the rate at 4.14% for five years, providing predictability and peace of mind.
- Included a further advance to consolidate £27,842 of existing debt and raise an additional buffer of £957.
- Kept the mortgage term unchanged—ensuring no added years to repayment.
- Included no arrangement, valuation, legal, or survey fees—saving upfront costs.
This practical debt consolidation remortgage allowed them to stay on a fixed repayment plan, reducing financial complexity and avoiding excessive credit card and loan interest rates.
Monthly Impact
- New monthly mortgage payment: £1,463.37 during fixed term
- Payment after fixed period: Projected £1,557.28
- Potential long-term cost of consolidation: £37,586.70 over the life of the mortgage
The advisor clearly outlined that they would pay approximately £1.35 per £1 borrowed through the consolidation—but found this acceptable given the simplicity and immediate financial relief gained.
Results: Improved Cash Flow and Financial Clarity
By choosing a debt consolidation mortgage, the couple achieved the following outcomes:
- Freed up monthly income previously going toward high-interest credit cards.
- Stabilised finances with a 5-year fixed rate mortgage.
- Avoided the lender’s standard variable rate and the risk of unpredictable future payments.
- Bundled all their repayments into one clear and affordable monthly mortgage payment.
In Their Words
“We only had a few weeks left before our fixed deal ended. We’re so glad we were able to stay with our lender and still consolidate everything. It’s a huge weight off our shoulders.” – Homeowners in Hampshire
FAQs About Consolidating Debt Through a Remortgage
Your Next Step: Speak to a Debt Consolidation Mortgage Specialist
If you’re exploring how to remortgage to pay off debt or want to see what , we can help.
At Deal Direct Financial Solutions, we’ve helped thousands of homeowners consolidate their debts and secure a better financial future. Let us help you too. Explore your debt consolidation mortgage options with our team today—book your no-obligation consultation now.
