Credit cards vs Loan - which is best re mortgage application?

emms_mum

Hi there, I'm hoping someone could give me a bit of advice...

My ex-partner and I have a joint mortgage and our plan is for me to buy him out. The mortgage payments would not be a problem (I pay full amount of current mortgage payments anyway + increase would not be a huge amount as up to new 75% value is interest only so only 10% is repayment), nor is my salary (I need to borrow just under 3x my salary, meaning a LTV of 85%. This releases enough equity to buy my ex-partner out).

The spanner in the works is my current out goings. I have a car loan, personal loan and credit cards. These are manageable but are reducing the amount they are prepared to lend. I was wondering if re-jigging by combining the loan + credit cards to one personal loan (which would reduce my monthly outgoings, and only increase the overall interest by around 1-2%) is worthwhile? In the past, a financial advisor informed me that when it comes to mortgage applications, credit cards go against you as in theory, they are on an ongoing debt whereas a personal loan has a definite, relatively short-term end point.

Any advice would be very gratefully appreciated! Thank you

jamesd

Ask the mortgage lender.

You also have the option of getting a loan and mortgage and then using 0% balance transfers on credit cards to clear the loan.

emms_mum

Thank you Jamesd