Mortgage question

Garfie

Hi, not sure if you guys will be able to help. Basically we owe a bit of money but have got a fab 0% deal on a credit card which will bring out debts down to £2200. The mortgage is in both our names, but is paid out of hubbies account. We've never missed a payment (on credit cards or mortgage), so no worries about that. Anyway, our fixed rate is due for renewal next May, so a while away, but what I want to know is whether it will make any difference if the £2200 is on my credit card or on my husbands. I dont work (stay at home mum) so it will all go on his wage - I've no idea how a remortgage works so this may all be meaningless!!

What I'm hoping is that if they only look at husbands wages and debts, and the £2200 is on my credit card, will that look better than if the debt is in his name, on his card, when we go to remortgage?

Does this even make sense?!?!

Meeper

Doesn't matter whose name the debt is in - if the mortgage is in joint names they will count both of your liabilities against the application.

I'm more concerned about a credit card lender who gives a stay at home mum with no income a limit of over £2200.....

Garfie

Thanks for the mortgage advice Meeper. I have the credit limit from when I was working before I was forced to stop working to have my son - would have cost me money to go back to work hence becoming a stay at home mum, but already had the card limit.

Thrugelmir

Unfortunately the money loaded onto the 0% credit card is still counted as debt. So despite being "fab" this will added to the £2,200 you owe. If you attempt to remortgage with a different lender.

Garfie

The £2200 will be all that we owe when the mortgage fixed term is up Thrugelmir, we're putting all our CC debts onto the 0% cards and when the deal runs out we're transferring it back onto my CC which has a lower overall rate, so there will be nothing on the other cards, just the outstanding £2200 balance on one card. We'll most likely stick with the same lender as I know other lenders will frown upon us only having one income now, but we're looking to transfer onto another fixed rate for security. Thanks.

dimbo61

well you have 15 months before you need to look for a new deal so if you can pay off or reduce your debt!
The less debt the better in the current mortgage market.
Have you checked what your mortgage reverts to at the end of the fix ? SVR or some kind of tracker deal?

DVardysShadow

Garfie wrote: »

.... have got a fab 0% deal on a credit card which will bring out debts down to £2200. ....

Does this even make sense?!?!

No it does not make sense. I don't see how ever fab a 0% deal is that it would reduce your debts by a penny

VT82

I think you should sell your house to pay off your credit cards and rent somewhere you can afford. Post an SOA on the DFW Board for help.









:D:D:D Joking! :D:D:D

Garfie

VT82 - PMSL!! I didn't read the joking bit at first and thought 'what one earth?!' Hahaha, blaming pregnancy brain!!!

DVardysShadow, it will help bring the debts down because instead of (and numbers plucked from the air here) paying £100 a month but £50 of that being stuck back on in interest, thus only paying off £50 a month, the 0% interest means we're paying the full £100 off, bringing the debts down a lot quicker than if we left them on a card charging 18.9% like my husband's does.

dimbo61

With the current tight lending rules on mortgages if you can clear the CC debt before you need to remortgage !

Burridge60

Is there a balance transfer fee of 3% of the balance too payable as one lump sum or do they add that to your debt.

If you switch debt twice wont you pay two such fees?

Confused about next May 2011 or 2012? If next year you should have made a pretty big hole in it. If this May it will still be a debt about the same as it is now.