01275 859143 Testimonials

“My Remortgage Was Declined — Even Though I’d Done Everything Right”

High debt levels can trap you even if your income is solid. When lenders see excessive unsecured debt, they won't lend to you — and that can affect everything, including future plans.

Wedding rings — Ms. J's security after debt-to-income improvement
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How it started

I had a decent income and my mortgage was in good standing, but I'd accumulated significant credit card debt across multiple cards — the classic trap of using one to pay another. I wasn't missing payments, but I was living with constant financial anxiety. When I decided to remortgage to raise capital to clear the cards, I hit a wall. The lender said no. The reason? Too much debt. Despite having a good income and a solid mortgage history, the ratio of my unsecured debt to my earnings was making me a risk in their eyes.

THE RESULT

The Outcome in brief

Negotiated reduced payments with all creditors
Interest and charges stopped
No bailiff action
Maintained current mortgage with existing lender
Secured best mortgage rate available
Partner now knows full financial situation
Couple married in 2019; relationship and confidence restored

Adviser: Priti Shah  ·  Lightside Financial  ·  Referred by Tony Balzan, CeMap Mortgage Adviser, One Stop Finance Ltd  ·  www.osfg.co.uk

Ms. J no longer feels trapped by debt. She understands her finances, knows she can meet her obligations, and has reclaimed the confidence and peace of mind that excessive debt had stolen.

If high debt levels are blocking your remortgage

You're not alone — and it's not necessarily permanent. A creditor arrangement can give you back control.

Call 01275 859143

The work behind the outcome

Ms. J’s wellbeing shifted immediately. When her partner understood the full picture and saw how quickly we’d resolved it, their relationship shifted too. They got married in 2019 — a milestone that had seemed impossibly distant. She got her fun-loving self back and could look forward to the future.

Questions about this situation

Frequently Asked Questions

Yes, it happens regularly. Even if your income is good and you're not in arrears, lenders look at your debt-to-income ratio. If you have substantial unsecured debt, many lenders will reduce their offer or decline you entirely. It's not about what's in arrears — it's about what you owe relative to what you earn.

If you already have a mortgage, as long as you keep up your mortgage payments, the existing lender is always obliged to offer a product switch, which allows you to switch to the best product available once your current mortgage product ends.

No, it is unlikely to do that. What it will help with is better financial management, which means that you probably don't need to borrow more money against your home. If you did borrow more money against your home (remortgage), you would be paying interest on the borrowed funds, whereas in a creditor arrangement interest is often stopped.

A creditor arrangement deals with unsecured debts — credit cards, personal loans, etc. Creditors can take court action and secure debt against your home, but this is unlikely if repayments are being made.

Your mortgage stays separate. As long as you keep paying your mortgage (which Ms. J did), your home isn't at risk from repossession. In fact, once you get the unsecured debt managed, the pressure eases significantly.

There's no fixed waiting period. It will depend on how each lender regards your position. This is when working with a good mortgage adviser is key.

Yes. Your mortgage is a separate contract and remains with your lender. A creditor arrangement only affects your unsecured debts. If you want to explore product switching options, you can do so.

The principles are similar, but buy-to-let mortgages involve additional factors (rental income, property valuations, etc.). If you're a landlord with high personal unsecured debt, the same debt-to-income concerns may apply, but speaking with a good mortgage adviser is important.