How a Debt Consolidation Remortgage Helped One Homeowner Regain Financial Control

Customer Overview

A homeowner in their late 40s, working full-time in a skilled occupation, based in Southern England, was seeking a solution to manage rising monthly payments. With an existing mortgage about to end, multiple credit card balances, and a secured loan, the homeowner faced considerable financial strain. They approached Deal Direct Financial Solutions for guidance on how to consolidate debts affordably while planning for a small home improvement project.

Challenges Faced by the Client

• Current mortgage expiring soon
• Outstanding high-interest credit card debts totaling £42,867
• A secured loan to repay
• Desire to fund a £9,925 bathroom renovation
• Limited monthly budget of £1,100 – £1,150
• Did not want to incur extra legal costs from additional borrowing through the existing lender, hence considering a NatWest debt consolidation remortgage.

The Debt Consolidation Remortgage Solution

After assessing the client’s financial profile and goals, Deal Direct recommended a NatWest 2-year fixed rate mortgage at 4.09%. The plan allowed for a total borrowing of £211,000 over 25 years, aligning with the client’s monthly repayment target.

Why NatWest Was Chosen

• Competitive fixed interest rate of 4.09% until December 2027
• 20% overpayment facility without penalty
• Accepted income beyond age 70, supporting long-term borrowing
• No upfront legal or valuation fees
• Client familiarity with NatWest simplified the process, making the NatWest debt consolidation remortgage a seamless choice.

Alternative Lenders Considered

Other lenders such as Halifax, Nationwide, and HSBC were explored but ruled out due to affordability concerns, higher interest rates, or borrowing restrictions beyond age 70. NatWest offered the best fit for the client’s specific needs.

Results and Benefits Achieved

• Monthly payments fixed at £1,129.71, meeting affordability goals
• All debts consolidated into one manageable remortgage
• Avoidance of additional legal fees by switching lenders
• £9,925 capital raised for a home improvement project
• Flexible options with 20% overpayment capability

Though the client was advised that rolling unsecured debts into a 25-year mortgage term would result in more interest over time (approximately £87,877.35 in total repayment), they valued the immediate relief and budget consistency more, making them satisfied with the NatWest debt consolidation remortgage choice.

“Choosing to consolidate everything into one mortgage repayment gave me peace of mind. The rate and monthly payment fit perfectly into my budget.”

Frequently Asked Questions

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

Savings vary, but this client was able to consolidate £42,867 of debt into a single mortgage payment that fit under their £1,150 monthly cap—a significant reduction compared to managing multiple high-interest repayments.

Can you remortgage to fund home improvements?

Yes, the client raised an additional £9,925 to fund a new bathroom, included as part of the mortgage advance.

Does remortgaging affect my credit score?

Initially, it may result in a slight dip due to the hard credit check, but managing lower, consolidated repayments consistently can improve your score over time.

What documents are required for a remortgage application?

You’ll typically need proof of income, existing mortgage statements, identification, and a breakdown of current debts. Deal Direct assists with gathering and evaluating all necessary paperwork for processes like a NatWest debt consolidation remortgage.

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

Yes, partially. This remortgage allowed overpayments of up to 20% annually without penalty. However, full repayment during the fixed rate period would incur early repayment charges of up to 1.5%.

Take Control of Your Finances with Expert Remortgage Advice

Struggling with multiple debts or looking to free up cash flow? A debt consolidation mortgage may be the answer. Our expert advisers can find you the best deal based on your personal situation, just like we did for this client.

Contact Deal Direct Financial Solutions today for a no-obligation consultation and let’s discuss how a tailor-made remortgage solution can reduce your financial stress and put you back in control with options such as a NatWest debt consolidation remortgage.

Start your remortgage journey now »