£1.25m capital and interest remortgage to consolidate personal debt


I recently helped a client secure a capital and interest remortgage so he could consolidate a significant amount of personal debt.

My clients’ property was based in Essex and worth £1.25 million, with a mortgage of £700,000. He needed to capital raise at least £150,000 altogether, so he and his wife would be able to consolidate £60,000 worth of debt and £90,000 to fund home improvements.

The main purpose of this remortgage was initially to reduce monthly mortgage payments, yet when it came to discussing the case, it quickly became clear that we could potentially clear a lot of debt at the same time.

My client’s mortgage with his current lender was  on their Standard Variable Rate, which had become very expensive. He also had an application declined by another high street bank.

As a commodity broker working in semi-precious metals, this client had a very high income of £1 million plus per annum, which was to be used for the sole application (on behalf of he and his wife). However, the fact that he had a large amount of debt despite his high income raised some questions with lenders. As it was largely made up of personal loans, the majority saw this as a problem and a reason to be wary.

All things considered, I managed to source a lender that was willing to see past my client’s personal debt and base lending on his actual affordability, particularly as a lot of the debt would be cleared by the remortgage.

I secured a 2 year fixed rate of just 1.35% for my client on part interest only and part repayment.  Not only this, the whole process from application to completion, was finalised within a month. This was an excellent result for my client, allowing him to reduce his mortgage payments and repay a chunk of his existing debts.