Remortgaging with credit card debt

andrewjt1988

Hi all, newbie here!
We are in the end stages of remortgaging and releasing some funds. We have about 8k worth or credit card debt, which the lender has said needs paying off (however not before completion). So in theory, we get the funds before we have to clear any debt. We asked solicitors what proof we need to provide them to show CC debt has been satisfied and they said that no proof will be required, just that debts are pain within 28days of completion. 
Will be getting away with not actually paying them off? If not, how soon after paying CC debt off can we respend on CC? 

Thanks in advance

fergie_

Some lenders do ask for proof, but it really depends on your T&Cs in the mortgage agreement.

At worst, it could be fraud / breach of contract and they demand the loan back. At best, they don't care at all.

Like many things, it generally only becomes an issue when things go wrong - for example if you defaulted or got into difficulty.

Best advice would be to ask the lender directly, especially if you are planning to clear and then re-borrow. Again though this is only likely to become a potential issue come next remortgage and whether the debt would impact on the amount you NEED to borrow.

Hoenir

andrewjt1988 said:

 We have about 8k worth or credit card debt, which the lender has said needs paying off (however not before completion). So in theory, we get the funds before we have to clear any debt.

The lender appears to be expecting you to clear the debt with the released funds. Risk is all yours. As technically you'll be in breach of the mortgage offer. Lender will cover their all options in the small print.