Adding a CC debt on to a Mortgage

bridget180282

Hi All

I am a soon to be FTB, I have a 12k deposit saved which would be 10% as I am looking at properties around the 120k mark, I have just cleared 1 credit card and still have 1 left for 3.5k, I got an AIP from the Halifax for 110k, I am just wondering would I be able to add the CC debt to my mortgage if I got a cheaper property?
or my other thought is to save a little more and clear the card but then if I did save the extra would I be better to not clear the debt and have more than a 10% deposit? the monthly commitment is about £80 per month

Thanks
Bridget x

diable

Clear the debt as a mortgage is over 25 years and consolidating debts is how most of us ended up on here.

Robert_Sterling

What is the interest rate charged on the credit card?

Farmerbob

I agree with Diable, by the time you pay off that 3.5k over 25 years you will pay back almost double dependng on the rates

Rgs

opinions4u

bridget180282 wrote: »

I am a soon to be FTB, I have a 12k deposit saved which would be 10% as I am looking at properties around the 120k mark, I have just cleared 1 credit card and still have 1 left for 3.5k, I got an AIP from the Halifax for 110k, I am just wondering would I be able to add the CC debt to my mortgage if I got a cheaper property?

Halifax will not let you borrow above 90% of the purchase price.

Don't think in terms of the mortgage lender repaying your card debt. It's part of your potential deposit that you'd be using to do that.

DVardysShadow

Unless you have a really good rate on your card, right now, you are doing the craziest of things. You have savings paid for by your credit card. So you could be paying 20% or whatever your card rate is to have £3500 in savings earning maybe 2%. That means that you would be throwing away £630/year - for however long you have had any savings. Pay off the card and save some more.