Remortgage query help appreciated please

sugared_honey

Hi there,

We are due to remortgage in august this year (forward planning I know! Just trying to organise the finances in preparation for this). At the end of our 3yr fixed term at 6.39%.

We currently have a credit card with a limit of £3,200 with a small amount outstanding, this will be clear by the end of the month.

We were wondering if it is best to cut up and cancel the card, or to just cut up the card and keep it running to assist with our credit history, we're not worried about the temptation of keeping it.

Also, on a slightly seperate note, we have consent to let on our property as my DH is in the armed forces and we have been posted to the other end of the country, planning on returning to our home to live in when he has left. On the armed forces board they were discussing how some lenders take on these mortgages on a residential basis, does anyone know if this is still available?

And finally, if that wasn't enough (!), when is it normally acceptable to start looking at other deals? We are keen to try and fix on a lower rate this year, but every time we have called our lender they have told us different months! (April, May and June).

Any help appreciated please.

SH X

sugared_honey

Bump! Wouldn't normally be so impatient but my DH is ready to cancel the credit card but I still think it might help our credit history?

Any advice would be appreciated x

VIGILANT22

a zero balance on your card isn't going to affect anything

herbiesjp

3 months before hand is a good timescale to start looking.

However, you current lender may not offer you something until nearer the expiry date - but at least you will have done your homework beforehand.

Keeping and clearing the card will indeed maintain your credit history.

Some lenders do intend offer members of the armed forces residential mortgages, even if they are let out, as they know you are likely to get moved around.

However, these lenders are the exception to the rule, so best to talk to a whole of market adviser who could advise straight away.

sugared_honey

Thank you for the help that was exactly what I wanted to hear! Now I'll just hope these rates don't go up in the next few months!

Thanks again

getmore4less

You have concent to let so you don't have to change.
Talk to the lender and see if they will allow this with a new deal.

What is the follow on rate on the current deal?

What will the place rent for and how big is the mortgage?


Keep the CC set up a DD for payment in full and put normal(food,petrol etc) budgeted spends on it.

picardygirl

VIGILANT22 wrote: »

a zero balance on your card isn't going to affect anything

Thats good to know that .... i was worried about that too when we look at new mortgages next year .... we have cc with £17.5k limit (crazy limit) ... dont have an outstanding balance on it but was wondering whether we should ring the cc company and get the limit reduced or would that not have any benefit .....

MortgagePerson

This is going to sound strange, but its a underwritting fact

If some one has a credit card with say a limit of £5K and the balance is zero some mortgage companies, take the view that after you receive a mortgage you could increase the CC balance This can let of alarm bells Always keep some balance

VIGILANT22

MortgagePerson wrote: »

This is going to sound strange, but its a underwritting fact

If some one has a credit card with say a limit of £5K and the balance is zero some mortgage companies, take the view that after you receive a mortgage you could increase the CC balance This can let of alarm bells Always keep some balance

Example please, names????.....Thank You