re-mortgage credit card advice

jillyp1

hi, we are about to remortgage, 72000 owing house worth around 105000 (sold last year for 109000 but fell pregnant and decided to stay put) , still haven't decided which mortgage to move to or if we should try and consolidate but if we do it would take us over 75% LTV as we have a personal loan with 4000 outstanding and credit cards at around £4500, would the mortgage company be more likely to give us a good deal as we are or if we consolidate? Also should I try and put the cards on 0% and if so should I do that before I apply for a new mortgage or should I wait for the mortgage to be settled? thanks for any advice

herbiesjp

How confident are you in the house value being £105k?

Valuations are coming in lower than expected for many people on re-mortgages, which can affect the LTV levels.

As you rightly say, the better deals are under 75% - so consolidating would take you over that level and therefore higher rates.

As long as your income is enough to support the mortgage and the debts then that will be fine, as that does not necessarily affect the rates available - the LTV does though.

Moving the cards onto a 0% card will be better for you irrespective of the mortgage scenario, as it will mean you are clearing the debt more quickly. However the lender will still take the card balance into account when calculating how much you can borrowing.