If you’re considering your financial options, a NatWest debt consolidation remortgage might be a suitable choice to simplify your repayments.

How a Debt Consolidation Remortgage Gave One Family Financial Breathing Space

Customer Overview

A woman in her early 40s working in the social care sector in southern England was approaching the end of her fixed mortgage rate. With multiple credit commitments, existing loan repayments, and the desire to raise additional funds for a family vehicle, she needed a mortgage solution that could consolidate her debts, extend affordability, and lock in a competitive rate amidst market uncertainty.

The Challenge: Rising Debt and Insufficient Lending Options

Our customer faced several interconnected financial challenges:

• Her existing fixed-rate mortgage with Leeds Building Society was set to expire in two parts, in February and June, creating uncertainty around future monthly payments.
• She needed to raise over £47,000 — £37,033 to consolidate credit cards and a personal loan, and £10,342 to purchase a car.
• Her current lender was unwilling to lend the necessary amount due to her debt-to-income ratio, despite having nearly 21 years left on the mortgage term.
• Many lenders either failed affordability assessments due to the debt consolidation or didn’t accept her full sources of income, including guardianship income.

The Solution: NatWest 5-Year Fixed Debt Consolidation Remortgage

After a thorough assessment of her needs, the best option was a debt consolidation remortgage with NatWest. We secured a 5-year fixed mortgage at 4.24%, totaling £311,340 over the maximum possible term of 21 years. This allowed her to:

• Consolidate £37,033 in unsecured debts into the mortgage, streamlining monthly repayments into a single, more manageable payment.
• Raise an additional £10,342 for purchasing a vehicle.
• Lock in a stable interest rate for five years while avoiding any gaps between the expiration of her existing deals and the start of the new one.

Why NatWest?

• NatWest ignored the debts being repaid when assessing affordability, making it possible to borrow more.
• They accepted special guardianship income, increasing income qualification.
• They offered terms up to age 75, enabling a longer repayment period and thus reducing monthly payments.
• The home’s A-rated energy certification also qualified her for a reduced rate, even with the £995 product fee added to the loan.

Repayment Benefits and Term

By selecting a capital and interest repayment method, our customer ensured the mortgage would be repaid in full by the end of the term. Stretching the mortgage to 21 years reduced the monthly payment burden, bringing her initial payments to approximately £1,874 per month — a figure she confirmed was affordable.

Results: Lower Monthly Payments and Simplified Debt

This remortgage strategy brought about significant financial improvements:

• Streamlined repayments: Multiple credit card and loan payments were consolidated into a single monthly mortgage payment.
• Peace of mind: By securing a fixed interest rate, the customer is protected from future rate rises for five years.
• Greater flexibility: With the mortgage term extended and a lower monthly repayment, the customer now enjoys more manageable household budgeting.
• Support for family goals: Additional capital raised enabled the timely purchase of a new family car—improving household mobility.

“I honestly didn’t think any lender would help, but my adviser found a solution that made all the difference. I finally feel like I’m on top of everything again.” – Satisfied Customer

Frequently Asked Questions (FAQs)

Can you remortgage to consolidate debt?

Yes. A debt consolidation remortgage allows you to roll high-interest debts like credit cards and personal loans into your mortgage. This can reduce the total monthly payments by extending the repayment period and lowering the interest rate.

Does remortgaging affect my credit score?

Short-term, applying for a remortgage involves a credit check, which may cause a small dip in your score. Long-term, consolidating debt and maintaining timely mortgage payments can improve your credit profile.

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

Monthly savings depend on the interest rates and terms of your existing debts. In this case, the client reduced multiple payments into one and achieved a total monthly mortgage payment of £1,874.27. Compared to paying loans and cards separately, this provided a significant simplification and reduced pressure.

What documents are required for a remortgage application?

You will typically need proof of income (payslips or benefit statements), bank statements, a credit report, your existing mortgage statement, and identification documents.

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

Fixed-rate mortgages often come with early repayment charges (ERCs). In this example, early repayment penalties ranged from 4.5% to 1% depending on when repayment occurs within the 5-year fixed term. However, overpayments of up to 20% of the mortgage per year are allowed without penalty.

Ready to Lower Your Monthly Payments and Clear Unwanted Debt?

If you’re exploring your options for a debt consolidation mortgage or want access to the best remortgage deals in the UK, our expert team can guide you every step of the way.

We work with a wide range of lenders—including those who accept non-standard income sources and offer lending into retirement.

Don’t wait for rates to rise. Contact us today to speak with one of our mortgage experts and discover your tailored debt solution.