As Christmas approaches, it’s easy to get caught up in the excitement presents, parties, and festive food can all add up – have you seen the price of Turkeys this year!
But for many households, this season also brings financial strain. Rising costs, regular use of credit cards or Buy Now, Pay Later (BNPL) services, and existing debts can quickly spiral, leaving many people feeling stressed when the January bills arrive.
If you’re a homeowner with good equity in your property, there may be smarter ways to manage your finances and reduce monthly outgoings giving you breathing room and peace of mind.
The Growing Debt Challenge
Over the past year, more households have turned to credit cards, personal loans, and BNPL schemes to keep up with the cost of living. While these can offer short-term relief, they often come with high interest rates or multiple repayments, making it hard to keep track.
Add Christmas spending into the mix, and it’s no surprise that many homeowners feel overwhelmed come January.
But there is help, if you own your home and have built up some equity, there are practical options to help you take control of your finances.
Option 1: Remortgage to Consolidate Debt
If your mortgage deal is coming to an end or you’re on a higher rate, a remortgage could be an opportunity to combine your debts into one manageable monthly payment.
✅ Pay off higher-interest debts (like credit cards or loans)
✅ Potentially lower your monthly outgoings
✅ Simplify your finances with one payment
However, it’s important to remember that you’ll be spreading the debt over your mortgage term, so while your monthly cost may reduce, you could pay more interest overall. Always seek advice before proceeding.
Option 2: Further Advance on Your Current Mortgage
If you’re happy with your current mortgage rate and lender, you could apply for a further advance an additional loan from your existing lender secured against your home.
✅ Keeps your main mortgage deal intact
✅ Can be used for debt consolidation or home improvements
✅ Usually lower rates than personal loans
Your lender will assess affordability and credit history, so it’s worth speaking with a broker to explore what’s possible.
Option 3: Secured (Second Charge) Loan
If remortgaging isn’t suitable for example, if you’re in the middle of a fixed deal a secured loan could be another route.
✅ Sits alongside your existing mortgage
✅ Can be used for debt consolidation or other needs
✅ More flexible lending criteria than some high street lenders
This option can be particularly useful if you’ve got strong equity but limited options with your main lender.
Take Action Before the New Year
It’s easy to put off reviewing your finances until after Christmas, but making a plan now can save you stress in January.
Here are a few quick tips:
- List all your debts and note the interest rates and balances.
- Avoid minimum payments on credit cards where possible they cost more long term.
- Resist unnecessary Buy Now, Pay Later spending unless you can repay in full.
- Speak to a mortgage adviser to understand your refinancing options early.
How Clever Mortgages Can Help
At Clever Mortgages, we help homeowners find the best way to manage their finances, whether that’s a remortgage, further advance, or secured loan. Our team can review your situation, explain your options clearly, and help you move into the new year with confidence.
📞 Get in touch today for a free, no-obligation chat about your mortgage options and how we can help reduce financial stress this Christmas.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.