First Direct Application with a Stooze Pot

midnite

I currently have a low mortage where the balance is less than one third of our salary. I also have a stooze pot that is worth more then my mortage just under 50% of our salary with of course the stooze pot all sitting in high interest accounts.

Now I could apply for the min mortage at FD in an offset account at very low rates, much better than my current mortage rate use the portion of the new mortage to clear my old and then withdraw the rest as if to use on home improvements paying back say "x" per month to reduce my mortage back to the correct level, at the same time having my stooze pot in the offset account and basically paying no interest.

Given this set of circumstances and the general advice being that you should close your stooze pot down any views of the risk of applying in terms of outstanding debt to savings, to salary to property equity etc and the fact they may catch on to what the intention is.

The worst thing is that they could say no, however what impact may a mortage refusal have going forwards, so therefore is a mortage refusal disastrous when re-applying at a further time.

rodent

I have > 30 mortgages totalling >£3.8m... I have run a healthy stooz pot throughout all M apps and have not had a problem ...if questioned about cc "debt" then pot needs to be shown to offset it ...i usually put a note on M app and explain to M broker that full cc balance is at 0% and is held in high int acc...............on one occasion i was requeted to pay off cards after M had been drawn down ....which i "forgot to do" !

A lot of people worry about this but we dont seem to be getting any real problem stories coming in ???

See:
http://www.stoozing.com/forum/YaBB.pl?num=1222436943

The Rodent

midnite

Thanks very interesting thread you linked to there.

midnite

I can happily say that FD have approved my application with my full stooze pot in tact.

Looks like however I may need to move across to slow stoozing to maximise the savings although even on the 0% BT's I can still save around 1 to 1.5% so this is probaboly still an option.