How a Debt Consolidation Mortgage Helped One Couple Regain Financial Control

Customer Profile

An anonymous couple in their late 50s, working in the public sector and living in the South of England, recently reached the end of their low fixed-rate mortgage deal. With debt mounting and limited time before reverting to a costly standard variable rate, they urgently needed a remortgage solution that combined speed, stability, and debt management, ideally through a NatWest debt consolidation mortgage.

The Challenge: Rising Debts and a Ticking Clock

The couple faced several pressing financial issues:

• Their current fixed-rate mortgage (1.42%) was set to expire within weeks.
• They carried a total of £27,842 in unsecured debt including credit cards and personal loans.
• They wanted to avoid slipping onto their lender’s standard variable rate, which could significantly increase monthly repayments.
• They preferred to maintain their existing mortgage term of 9 years and 10 months.

Their primary objective was to remain with their existing lender for a seamless product switch and consolidate debt into a new 5-year fixed rate mortgage to ensure financial predictability.

The Solution: A Tailored Debt Consolidation Remortgage

Given the urgency and complexity of their situation, a debt consolidation remortgage with NatWest was recommended. This solution allowed them to combine their existing mortgage with additional borrowing to cover debts and a small buffer for completion-time adjustments, effectively creating a NatWest debt consolidation mortgage.

Mortgage Details:

• Lender: NatWest
• Loan Amount: £142,664
• Fixed Rate: 4.14% until Dec 2030
• Term: 118 months (9 years and 10 months)
• Monthly Repayment: £1,463.67 initially
• Additional Borrowing: £27,842 to consolidate debt + £957 buffer
• Fees: £0 product/admin/legal/valuation fees

Because time was of the essence, a full remortgage with a new lender would not have completed swiftly enough. A rate switch and further advance with their current lender offered the fastest path to fiscal stability without triggering the lender’s less favorable SVR. Thus, a NatWest debt consolidation mortgage was the optimal solution.

Debt Consolidation Explained:

By folding their unsecured debts into their mortgage, the couple traded high-interest monthly obligations for a single, manageable monthly mortgage repayment through their NatWest debt consolidation mortgage. While it extended the term of this debt and increased the overall repayment amount, it drastically lowered their monthly financial pressure.

The Results: Stability, Simplicity, and a Clear Path Forward

• Debt Eliminated: £27,842 rolled into mortgage
• Interest Rate Secured: Long-term fixed rate of 4.14%
• Timeline Maintained: Original mortgage term kept intact
• Fees Saved: £0 in additional fees payable to lender

Though the cost of consolidating the debt over the mortgage term adds up to approximately £37,586, the couple achieved:

• Reduced stress from managing multiple creditor payments
• One simple and predictable payment each month
• A rapid solution, avoiding a costly variable rate increase

“We’re so relieved to have everything under one manageable payment before the rate changed. It all happened quickly and exactly as explained.” – Anonymous Client

Frequently Asked Questions (FAQs)

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

Monthly savings vary depending on the interest rate of your debts and new mortgage terms, but many clients see significant decreases by replacing high-interest credit card debt with lower-interest mortgage rates. Consult our remortgage calculator for personalised estimates.

Can you remortgage to fund home improvements or leave a buffer?

Yes. In this case, our clients added a small buffer (£957) to their mortgage to accommodate any last-minute changes to their credit situation.

Does remortgaging affect my credit score?

Yes, a credit check is usually performed during the remortgage process, which may cause a temporary small dip in your credit score. However, consolidating debt responsibly can improve your credit over time.

What documents are required for a remortgage application?

Commonly required documents include:

• Proof of income (payslips or tax returns)
• Proof of identity (passport or driving license)
• Mortgage statement
• Details of current debts (credit cards, loans)

Can I repay a fixed-rate mortgage early without penalties?

Most fixed-rate mortgages carry Early Repayment Charges (ERCs), as this one did. Charges reduce each year of the fixed term. Some lenders allow 10% overpayments annually without penalty, which was the case here.

Take Control of Your Finances Today

If you’re nearing the end of your fixed mortgage term and juggling debts, a debt consolidation mortgage could restore your financial peace of mind. Don’t wait until you fall into a higher interest trap. Let our team guide you through your remortgage options quickly and efficiently.

Contact us today for a no-obligation consultation and see how a NatWest debt consolidation mortgage can help tailor the right solution for your situation.

Visit our website or call now to speak with an expert advisor.