Remortgaging to pay off unsecured debt

Kerrylou2

Hi - I’m currently going through a remortgage - to improve our rate and to pay off unsecured debt due to house improvements. In terms of paying off the debt - will the lender ask for the solicitor to pay this on completion or would I do this and then send proof? Of which, does anyone know what proof I would send?

the reason why I’m asking - is with my previous mortgage there was a special condition stating the solicitor to pay off some debt at completion - which the solicitor refused as he said it was out of scope and would end up costing hundreds. It was a very special case they though so I’m guessing at the time the mortgage lender was being very strict - which is rightly so.  So I’m just trying to figure out what usually happens as we are in a much better position this time round. 

[Deleted User]

Majority of high street lenders will just give the money to you and rely on you to do what you said you would do.    Solicitors dont tend to get involved in that bit anymore.  

Some small lenders like regional building societies will ask for the account numbers and pay them off prior to releasing the rest of the funds.   Thats quite unusual though 

Lender will rely on the condition that the mortgage is used to clear those debts

Kerrylou2

Deleted_User said:

Majority of high street lenders will just give the money to you and rely on you to do what you said you would do.    Solicitors dont tend to get involved in that bit anymore.  

Some small lenders like regional building societies will ask for the account numbers and pay them off prior to releasing the rest of the funds.   Thats quite unusual though 

Lender will rely on the condition that the mortgage is used to clear those debts

Thanks so much for replying - that’s made me feel a bit better. I know last time it was a very specialist mortgage and my mortgage advisor said that it very rarely happens - and guess what....it did 😂 but we managed to get around it as I sent lots of documentation of proof it was paid - which took a lot of time but worked! The solicitor at the time said that they wouldn’t get involved in that and would cost a lot of money if they were to do so. 

The situation is a lot better now so the remortgage process hopefully will be a massive improvement. I’m just trying to prepare myself in what’s next! I would be happy to pay off the debt at completion and send proof - i just don’t want to pay the solicitor to do it as it’s a lot of money and work.

Thank you! 

london21

Virgin money paid all the re-mortgage funds to me. I borrowed some money from family to complete which i then repaid back.