Do I quit the stoozing before remortgaging?

jumpt · 6 April 2005 at 3:52PM

Hi Guys,
I've got a couple of cards egg (6 month) & mbna(12 month),£12k total stoozed, which are about to come to an end in July 2005.

I will also be looking to remortgage in January 2006 when my fixed rate period comes to an end.

I suppose my question is this:

A: Do I continue on the Stoozing round-a-bout and start applying for new cards?
or
B: pay them both off, close the mbna account and sit tight until I remortgage (60% LTV)

Its the credit rating I'm concerned about, I don't want to miss out on a good mortgage deal cos my rating is rubbish.

ta

obeywan_kenobe · 6 April 2005 at 4:22PM

I had the exact same situation and I had no problem. I even told Nationwide what I was doing and they didnt seem worried.
So carry on stoozing.
Obviously different mortgage companies may have different policies.

Hobo_2 · 6 April 2005 at 4:40PM

Interesting that Obeywan, read this from mtg board, diff circumstances

http://forums.moneysavingexpert.com/showthread.html?t=40819

jumpt · 6 April 2005 at 4:55PM

I'll think I'll pay them off and sit tight (seeing as I'm not cancelling early) and then once the mortgage is sorted.........let the stoozing commence!

bethyblue612 · 6 April 2005 at 5:33PM

You could start a couple of 6 month deals going in early July and they would still be cleared before you re-mortgage in Jan'06. I would go for one more round of stoozing (but then I'm not the one risking a mortgage deal!!).

jnd · 6 April 2005 at 5:36PM

obeywan_kenobe wrote:

I had the exact same situation and I had no problem. I even told Nationwide what I was doing and they didnt seem worried.
So carry on stoozing.
Obviously different mortgage companies may have different policies.

This applies to me also even though someone has a problem with the Nationwide in the link that Hobo provided.

It all comes down to whether or not their system thinks you're over committed.

You could take the chance and apply anyway. If they turn you down then reapply 6 months later with the debt cleared.

Joe_Bloggs · 6 April 2005 at 7:15PM

£12000 at a 4% net stooze for 6 months is approx £240 of interest (tax at 20% on 5% interest rate from eg. Ing). The Egg is worth keeping and the MBNA should be closed for remortgage application reasons. A great card due to the constant £5 minimum monthly payments. Credit card repayments are a factor in mortgage applications and if you can say £5 then you have an advantage of those who quote 2.5 to 3% of outstanding amounts. Sometimes you can convince lenders of your savings but they can find out how much you owe far easier.
Consider your next cards carefully. They may well be owned/related to a future mortgage lender.
J_B.

obeywan_kenobe · 6 April 2005 at 8:18PM

jumpt wrote:

I'll think I'll pay them off and sit tight (seeing as I'm not cancelling early) and then once the mortgage is sorted.........let the stoozing commence!

Why dont you see what the mortgage company says before you settle all the cards. Starting off the stoozing could be problematic.

kazd · 7 April 2005 at 12:09AM

We have closed ours, we had about 45k stashed in various places and a further 45k or so of open credit card accounts (where 0% had expired) but with zero balances. My reasoning was that we could quite easily be classed as being committed to 90k of credit thereby reducing the amount we could borrow for moving house. We want to move and increase our mortgage, also when speaking to our mortgage company they said they would want to know what we had outstanding on cards but the fact that we had money to clear them would make no difference. If they figured that we were good for 200k of credit, then they would consider that we had used 90k and could only get 110k for the mortgage.

Do I quit the stoozing before remortgaging?

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