At Clever Mortgages, we regularly meet clients who feel overwhelmed by rising mortgage rates and mounting debts. Recently, we helped one of our clients achieve an incredible saving of almost £16,000 per year through a carefully structured remortgage and debt consolidation.
The Client’s Situation
- Property value: £240,000
- Mortgage balance: £115,000
- Additional borrowing required: £65,000 to clear credit cards and loans
- Current mortgage term: 17 years
- Current rate: 5.78% (fixed until December)
- Monthly mortgage payment: £915
Like many homeowners, our client wanted to make life more affordable. He was open to extending his term slightly (to 20 years, in line with retirement age) to ease the monthly payments, while keeping the flexibility to make overpayments and reduce the balance quicker when possible.
Our Solution
We arranged a remortgage at a new fixed rate of 4.59%. By consolidating his debts into the mortgage, reducing his interest rate, and restructuring the term, we created a solution that:
Cleared his high-interest credit cards and loans
Reduced his overall monthly outgoings significantly
Gave him the option to overpay and bring the term back down in future
The Results
By taking everything into account, the client is now saving just under £16,000 per year compared to his previous mortgage and debt repayments combined.
Not only is his financial situation far more manageable, but he also has peace of mind with a lower, fixed interest rate and the flexibility to take control of his mortgage term by overpaying when he’s able.
⚠️ Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. Securing short-term debt against your home may increase the total amount you pay back.