Can I remortgage with £15k Credit card debt?

fluffyowl

I moved into a doer upper house and have spent over £30k doing the house up. £15k of that is still on two credit cards.


I've got a year to go on my mortgage but want a better deal, and possibly to consolidate the debt based on the fact that the house is now worth much more.


Am I better to apply for a remortgage with the debt in place, or am I better to transfer the debt temporarily to a family member so I 'look better'? And if so, will the mortgage provider query £10k just suddenly 'disappearing'?



Any advice GREATLY appreciated as I know I look bad on paper, but 0% credit cards were soooo much cheaper than a 10% loan!


PS I am paying off the credit cards as quickly as I can, and have a 'Good' credit rating according to MSE's lovely Credit Club

[Deleted User]

There are lenders that allow you to declare what your commitments will be once the new mortgage is in place. This will allow you to borrow to put the credit card debt on the mortgage (not commenting on this being right or wrong) without it coming off your affordability.

There is a background rule about over-indebtedness where lenders have caps on the amount of unsecured debt to income on day of application. Not all lenders have this though

May be worth getting some qualified advice on best way forward. The sooner then better as would allow you to start tidying things up

kingstreet

If you are going to use remortgage funds to repay the card debt, you should declare the card debt on the application.

If you try to be clever and borrow £15k claiming it's for a different purpose you might just tie yourself up in all kinds of knots.

Lenders will lend for debt consolidation. Correct lender selection means you can do this honestly.

foxy-stoat

How much are the Early Repayment Charges going to be? I would wait until your fixed rate is up and paying as much as you can onto your credit cards in the meantime.