Credit Cards and Mortgages

J.Walker · 19 October 2017 at 7:40PM

I am looking to gain a mortgage in a 'few' months (ideally somewhere between January and March 2018), and am looking for a house requiring cosmetic refurbishments. I will have the cash for the deposit saved up, and have the statements etc. to prove this to the mortgage company. I've already checked and can pass the affordability requirements etc. for the mortgage.

However, if I buy within a few months, I won't have enough cash saved to pay for all of the refurbishments, so would be looking to secure ideally an interest free credit card or if not a cash advance one.

I'm aware that making multiple applications for credit in a short period won't look good on a credit report, so I was wondering whether it would be best to get a long interest free card now, not use it until I get the house sorted (or just put something minor on and clear in full each month to maintain activity), and then apply for the mortgage in a few months.

My thoughts are this will stagger the credit applications and I won't have a huge balance owing on the card which could threaten passing affordability. I'm not overly concerned about losing a few interest free months as I've already calculated I would be able to pay the card off in less than a year, and could always borrow some money from family if it came to it.

Is this likely to be a worthwhile pursuit, or would I be better applying for the mortgage as now (1 credit card, paid off in full each month) and then getting the card straight after that. Aside from 1 card I don't have an overdraft facility, nor do I have any store cards, car finance or anything like that.

Thanks in advance

ludds123 · 19 October 2017 at 10:26PM

When we recently took out a mortgage with Nationwide they were trying to throw everything at me.. 0% credit card on balance transfers and purchases was definitely one of the things as it was the only one I considered. When I used to work for the Halifax we would regularly try and cross sell credit cards to new mortgage companies. You may find this works out like this for you!

J.Walker · 20 October 2017 at 1:34PM

Thanks for the reply, it's certainly something to consider that didn't really occur to me beforehand!

I'll run it by the mortgage broker and see, the best quote I have had for my situation was through a specific mortgage company rather than a bank, but no doubt there'll be a connection to a credit card company somewhere!:)

Nebulous2 · 20 October 2017 at 5:30PM

You need to be careful what you apply for, read the terms and conditions.

Some cards with long 0% periods will only give you the promotional rate for transactions made in the first 60 days. A 0% purchase card will be best for buying stuff over a prolonged period of time.

Credit Cards and Mortgages

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