Remortgage after major home improvements

Petriix

In the interim you need to work at paying off the high interest credit cards ASAP. Otherwise you're wasting money on interest rather than paying off the debt. 

CSL0183

Caught between a rock and a hard place, it’s a difficult one and something I will soon be doing too for an extension build but on a grander scale in the 6 figure region. I can only raise so much secured debt (about half) and the rest will be on unsecured loans / CC’s and then hopefully a remortgage to clear it all at the end of it all. 

Keep the thread updated on your progress please 

GMDew

I’ve just been tol that the FCA changed the rules on including debt for a remortgage. And this is the reason. I’m trying another broker and my bank to see if this is true 
it would be helpful if I knew a work-around. The FCA seem to have put me in a financial predicament and this goes against there use.

K_S

GMDew said:

I’ve just been tol that the FCA changed the rules on including debt for a remortgage. And this is the reason. I’m trying another broker and my bank to see if this is true 
it would be helpful if I knew a work-around. The FCA seem to have put me in a financial predicament and this goes against there use.

@GMDew May I ask who told you this please?

If they are implying that the FCA has outlawed debt-con remos, that's just plain incorrect. There are lenders who do not accept debt-con as a valid reason, some which are cautious and a number of lenders for whom debt-con is a perfectly acceptable reason for raising capital through a remortgage.

For example here is the criteria snapshot from a mainstream lender listing the acceptable purposes for a remortgage.

[Deleted User]

Its probably more that some brokers deem them too high risk of future complaints to be worth doing.   
Im probably coming across as selfish but the amount of work involved in a debt con case makes them pretty much guaranteed to make me less than minimum wage by the time its all done. Different networks have different requirements for putting complex cases together and mine is particularly harsh on debt con.

Also, suitability of securing unsecured debt will always be something that attracts complaints which no one wants to deal with 

Some brokers dont do any residential interest only, some dont do help to buy, some don't do buy to let, and some just dont want to do debt con.

I suspect the broker has made something up about the fca to just move on to something easier.  

[Deleted User]

Another thing to add. If your cards are on 0% then a lot of brokers wouldn't be allowed to consolidate them.   Im not sure if that's an fca rule or a more local compliance thing 

K_S

Deleted_User said:

Its probably more that some brokers deem them too high risk of future complaints to be worth doing.   
Im probably coming across as selfish but the amount of work involved in a debt con case makes them pretty much guaranteed to make me less than minimum wage by the time its all done. Different networks have different requirements for putting complex cases together and mine is particularly harsh on debt con.

Also, suitability of securing unsecured debt will always be something that attracts complaints which no one wants to deal with 

Some brokers dont do any residential interest only, some dont do help to buy, some don't do buy to let, and some just dont want to do debt con.

I suspect the broker has made something up about the fca to just move on to something easier.  

That's very interesting to hear @Deleted_User. Prior to setting up as an AR, I've worked at 2 very large brokers and they've all had reasonable compliance reqs for debt con remos. Having said that, I haven't done any debt-cons as an AR yet and my current network is a tiny one with a very practical approach to compliance, but I will have a chat with the compliance head to see what their general thoughts are.