Re-mortgaging and a 0% credit card balance

DCLane
DCLane Posts: 62 Forumite
in Mortgages & endowments
I'm just starting my re-mortgaging process as my current offer runs out mid-April and searching for lenders.

However, I've also got a credit card balance (at 0% until April) of £3500. Should I pay this off now as I've kept the balance in savings earning interest, or should I just leave it on? My concern is that it might affect the interest rate offered.

I've got no problem in meeting the target amount (property worth £210-225K, loan required £125K, joint salary 56K+).

Also, would I need to put some cash into the re-mortgage?

Thanks for any assistance.

David

Comments

  • MortgageGenie
    MortgageGenie Posts: 135 Forumite
    Hi David,

    Provided there are no other credit commitments, maintenance payments etc. then the £3500 outstanding on your credit card will not have any impact on your remortgage as you are only looking for slightly over 2 times joint income.

    HTH
    I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kinster_2
    kinster_2 Posts: 592 Forumite
    If you have a balance (£1000) on your credit card, but you pay it off each month. Would that work against you or does it say you pay it off every month?

    Regards
    You'll Never Be Rich Working for Someone Else
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    If you pay off your cards each month - you do not have to mention these on an application - just the fact that you have them is enough on some forms.

    Most lenders are concerned about what commitments will be outstanding and running concurrently with a mortgage i.e. personal loans or high credit card balances that are being paid off slowly.

    Cards that are cleared monthly will not affect your mortgage application
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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