Client Overview
A man in his late 40s, working in a technical role and based in the South of England, recently approached us seeking a way to deal with mounting monthly debt repayments.
His fixed-rate mortgage with Leeds Building Society was coming to an end, and alongside that change, he was also managing several credit defaults and unsecured debts totalling over £87,000.
Concerned about his credit profile and unable to secure help from his existing lender, he was looking for a way to remortgage, consolidate debt, and rebuild his financial foundation.
The Challenge: Adverse Credit and Unsupportive Lender
The client’s primary goal was to remortgage to a new 5-year fixed rate to maintain payment stability and clear unsecured credit commitments. However, significant defaults on his credit report posed a challenge.
His current lender would not consider him for a new term due to their strict lending criteria. Additionally, the client sought to consolidate multiple debts and raise extra funds for repaying recent defaults, all while keeping monthly mortgage payments affordable as he approached retirement age.
The Debt Consolidation Remortgage Solution
After carefully reviewing the client’s entire financial picture, we recommended a debt consolidation mortgage via West One Secured Loans. This lender was selected because they were uniquely willing to assist despite the client’s adverse credit. The solution included:
- Mortgage Amount: £156,705
- Term: 24 years, extending to planned retirement age
- Rate: 5-year fixed at 7.74%
- Monthly payment: £1,218.32 during fixed term
This recommendation allowed the client to:
- Consolidate debts exceeding £87,000 into the mortgage
- Raise an additional £33,319.74 to repay defaults directly
- Reduce monthly outgoings and improve financial manageability
- Preserve affordability with a longer term, avoiding near-term financial strain
Why a Longer Fixed Rate Was Best
Due to the large and recent defaults, a shorter fixed-rate term could have left the client unable to switch providers in the future. A 5-year fixed term creates stability for rebuilding his credit, and once defaults age off his report, he can explore mainstream mortgage options again.
Affordability Built for the Long-Term
The client confirmed that the projected monthly payments were affordable. We’ve also structured the loan to avoid early repayment penalties by aligning the remortgage after his existing fixed-rate deal’s expiry.
Achieved Results: Simplicity, Stability, and a Clean Start
This debt consolidation remortgage delivered a number of key benefits:
- Eliminated over £87,000 in high-interest unsecured debt
- Lowered monthly financial outgoings to a manageable level
- Facilitated credit repair through a stable 5-year fixed rate
- Protected affordability into later working years
“No other lender I spoke to was willing to help given my credit issues. The team at Deal Direct found the only lender who could make this work and explained every step clearly to me. Now I can breathe knowing my debts are manageable, and I have a plan to repair my credit.”
FAQs: Remortgaging to Clear Debt
Your Fresh Start Could Begin Today
If you’re struggling with unsecured debts, facing difficulties with your current mortgage lender, or simply want a fresh financial start, a debt consolidation mortgage might be the answer. Our experienced advisors can explore your options across specialist and mainstream lenders—even if you’ve faced credit challenges in the past.
Take control of your future – for a free, no-obligation mortgage review.
