Hassle-Free Remortgage for Debt Consolidation & Home Improvements

Rob and his wife, living in a semi-detached house in Ipswich, were fast approaching the end of their existing 2-year fixed-rate mortgage. Their home had increased in value over the years to £380,000, and their outstanding mortgage stood at £210,000. With two growing teenagers, the family desperately needed more space, but they did not want the expense and hassle of moving home. They wanted to raise £30,000 of equity to fund a loft conversion. Concurrently, they decided it was the perfect time to consolidate £15,000 of high-interest credit card debt and store cards that they had accumulated during a previous renovation project.

The Challenge

Rob and his wife were busy working professionals with very little spare time. They were also deeply concerned about the “remortgage crunch” and the rising cost of living. When they checked their options online, they found that adding debt consolidation to a mortgage application can make lenders highly cautious. Some lenders apply strict caps on borrowing or increase interest rates when unsecured debt is brought into the main mortgage. They were worried that their current lender would either block the capital raise or offer them an uncompetitive rate to stay.

The IMC Solution

The couple contacted IMC Mortgage Brokers. Our adviser conducted a full financial health check, evaluating their monthly outgoings and the equity available in their property. By consolidating the £15,000 of credit card debt (which carried average interest rates of 19.9% APR), we calculated they could drastically reduce their monthly outgoings, even when taking into account the longer-term mortgage interest.

We scanned the entire market, comparing their current lender’s product transfer rates against new deals. We identified a top-tier lender offering a fee-free remortgage package with a competitive 5-year fixed rate. The lender accepted the £45,000 capital raise for both the loft conversion and the debt consolidation without penalty, utilising the substantial equity buffer (as the new loan-to-value was still a very comfortable 67%). We handled all of the administrative work, liaised with the valuation surveyors, and kept the couple updated via our online client portal.

The Outcome

• The Result: Secured a new 5-year fixed-rate mortgage of £255,000 at 4.29%. By consolidating their high-interest debts, the couple reduced their total monthly debt commitments by over £320 per month, whilst securing the £30,000 cash needed to begin building their loft conversion immediately.
• Client Feedback: “This is the third time we’ve used IMC to remortgage, and they never fail to deliver. They cut through the noise, found us a brilliant rate, and sorted out our debts and building funds in one clean sweep. Our monthly outgoings are far more manageable now. Outstanding service from start to finish!”