Mortgage/Stoozing Timing

unionjack81

Hi All,

I am currently in the process of my first stooze and hope to have £10k within the next month. I aim to pay this off my mortgage which is sitting at a rate of 5.38% (Nationwide).

I'm not sure if this question should be in the stoozing or mortgages but.....

My question is will having £10k on credit cards affect a mortgage application in 18 months? I say £10k, but it could be £20k depending on how I go with stoozing. Should I lift the money from my mortgage and pay off the credit card balance(s) a few months before any possible remortgage to tidy up my credit report?

I'm just scared I won't have much of a choice of mortgages when my current deal expires (March 2010).

Thanks

CluelessJock

Can I ask how you intend to pay back the £10K once you have reduced your mortgage?

CJ

unionjack81

I was going to service my credit card with the minimum payment.

The particular mortgage that I have allows me to take back any overpayments so that was the plan.

feisty1

(March 2010).??????????

This is Oct 2008, we didn't even know in July 2008 what it would be like a few months later..........

Yesterday is history, tomorrow is a mystery
LIVE IN THE DAY

unionjack81

feisty1 wrote: »

(March 2010).??????????

This is Oct 2008, we didn't even know in July 2008 what it would be like a few months later..........

Fair point.

Perhaps I should rephrase my question. If I had a remortgage application coming up within the next 6 months, would I be better removing the remaining balance of the money I had stoozed from my mortgage (which provides this facility) to clear my credit cards or is it best to transfer the balance to another 0% card?

Does £10k on a credit card affect my credit score more than an extra £10k on my mortgage?

neas

I'd say stoozing in these times.. is a very risky enterprise oO.

What if you couldnt get at the money, you'd be shafted royally.

strumpet

I'm noe expert at all, but I would have thought that as long as you haven't defaulted on the credit card, it doesn't matter what the balance is.

However, on of the questions asked when taking out a mortgage is "Do you have any other loans?" to which you'd have to answer "Yes!" so this might have a bearing on your application.

Another to bear in mind of course, is that if you are changing mortgage companies, you'll need to redeem the overpayment and then take out the new mortgage, otherwise you'll lose the ability to repay the credit card as, on your new mortgage, there will have been no overpayment.

As your mortgage is only at 5.38%, you'd be better off placing the stoozed money in an ISA as this would pay more interest. However, you'd only be able to use £3600 of the 10K you had to do this.

If I understand your situation correctly. Which I probably don't!

Strumpet

unionjack81

strumpet wrote: »

If I understand your situation correctly. Which I probably don't!Strumpet

Yes, you've pretty much picked up the situation correctly. You're probably right on the risky stoozing front. Think I'll monitor the situation for a while on the basis it'd be crap to have £10k in a savings account somewhere that I can't touch because the bank went under!!!!! :rotfl:

The story of my life, when I decide to do something, it's not possible because of powers beyond my control.

neas

the stooze would prob get you a few hundred quid but could cost you thousands if a financial instition (like your mortgage owner) goes down.;.. and is either nationalised etc... ts and cs could change... Just not worth it imo.

strumpet

Although you would be protected if the bank was a member of the FSA I think it is.As long as you have under £50K with each institution.Read Martin's savers page.

getmore4less

Have you actually worked out how much this stoozing will save you after the BT fees?

Remember you do not get the full stooze pot for the full term.(takes time to get the money and you have to pay it back early) so on a 12 month deal you are usualy around 2-3 weeks short. you have to take into account the min payments as well.

Anything you stooze over the next few months will have been paid off in 18months so nothing to worry about, it is those you get after about 6 months you will need to worry about.

Getting the money out of the mortgage could be an issue if the T&C allow it then you should be able to do it, depending on the lender it may or may not be a possition they can close. an offset can be fairly save for this but who knows what will happen next.