Debt Consolidation Remortgage Helps Couple Simplify Finances and Save Thousands

Overview: A Couple’s Journey to Simplified and Smarter Mortgage Management

A couple in their late 40s, living in southern England and working in the public and retail sectors, were facing increasing financial complexity. With a mortgage nearing expiry and a separate secured loan with higher interest, they sought a way to merge their commitments into one manageable monthly payment—without sacrificing affordability or long-term financial goals. They considered a Halifax debt consolidation remortgage as a potential solution due to its benefits.

Challenges: High-Interest Secured Loan and Mortgage Term Constraints

The couple’s existing mortgage deal with NatWest was ending soon. They also had a secured loan attached to their property carrying a higher interest rate. Their primary concerns were:

• Rising interest rate environment
• Desire to reduce overall loan term from nearly 13 years to 11
• Need to consolidate £55,482 in secured debt for easier management
• High legal costs from further borrowing with their current lender
• Complex affordability assessments with many lenders

Solution: Consolidating Debt Through a Targeted Remortgage Strategy

After a full review of the market and multiple lender assessments, Deal Direct Financial Solutions recommended a debt consolidation remortgage with Halifax Plc. Considering a Halifax debt consolidation remortgage allowed the couple to:

• Combine their outstanding mortgage of £126,209 and secured loan into a single loan of £182,500
• Secure a competitive interest rate of 4.03% fixed until December 2030
• Restructure the term to 11 years, aligning with their goal of faster debt clearance
• Achieve monthly affordability with first payments set at £1,721.04, comfortably within their budget
• Choose a fee-based product, which reduced total monthly payments

Why Halifax Was the Best Choice

Halifax was uniquely positioned to help because they:

• Excluded the existing secured loan from affordability calculations—critical for approval in a Halifax debt consolidation remortgage.
• Accepted overtime income, boosting their borrowing capacity
• Offered legal and valuation fees coverage, helping save on upfront costs
• Allowed portability and no tie-in period after the fixed term ends

Other lenders were considered but had limitations like higher interest rates, geographical restrictions, or more stringent terms.

Results: Streamlined Repayments and Long-Term Financial Flexibility

By consolidating their mortgage and secured loan, the couple simplified their finances and locked in a lower interest rate. While they extended part of the debt over a longer term (11 years), they understood the trade-off for cash flow improvement and clarity in their monthly budget. The Halifax debt consolidation remortgage will ultimately cost roughly £1.31 per £1 borrowed, or an estimated £72,681.42 for the debt portion over the loan term.

“We wanted a fresh start with reduced costs and a shorter mortgage span. This new deal makes everything more manageable and gives us peace of mind for the next five years.” – Happy Clients (Graham & Melanie, anonymised)

Frequently Asked Questions

Can you remortgage to consolidate debt?

Yes, many lenders allow you to remortgage to consolidate secured or unsecured debt. This involves combining debts into a single lower-interest mortgage, helping reduce monthly payments or simplify repayment structures.

How much can I save monthly by consolidating credit card debts into a mortgage?

This depends on your current debts and interest rates. In this case, the clients consolidated over £55,000 and managed payments within a new monthly budget of around £1,721.04, achieving both savings and clarity.

Will remortgaging to pay off debt affect my credit score?

Initially, there may be a short-term dip due to credit checks, but consolidating and more consistent repayments can improve your credit score over time.

Do I need a solicitor for a remortgage involving a secured loan?

If the new lender offers free legal services (as Halifax did in this case), solicitors are appointed on your behalf. However, if you’re taking further borrowing from your existing lender, you typically need to instruct your own solicitor—incurring higher costs.

Can I repay my mortgage early without penalty?

This mortgage includes early repayment charges (ERC) that decrease over the fixed term (5% in Year 1 down to 1% in Year 5). After the fixed term, you can repay without penalties.

What documents are required for a remortgage application?

Typically, you’ll need ID, proof of income (e.g., payslips, P60), existing mortgage statements, credit commitments, and bank statements.

Ready to Reclaim Control of Your Mortgage and Debts?

If you’re considering a debt consolidation remortgage, comparing rates across the market and working with an expert advisor can save you thousands. Let Deal Direct Financial Solutions guide you to the right lender and structure tailored to your goals. A Halifax debt consolidation remortgage might be the solution you are looking for.

Contact us today for expert debt consolidation mortgage advice – let’s simplify your finances, together.