Should i move my loan to credit card to help with getting a mortgage

skintbloke123

Hi

We are about to try and remortgage and we are wondering if it is a good idea to move a loan to a 0% CCard to help with our application.

The loan finishes in Jan and has a settlement of approx £1800.

Our combinded salaries are approx £37K we also get about £1.5k in tax credits and child benefit.

We are remortging on a house of about £165ish K our current mortgage is £127.

We would like to add the loan and about £9k of credit card debt to the mortgage, but we are wondering if we should move the loan to a CCard before applying so we don't have the £313 monthly payment showing on our file. I appreciate there might not be enough equity to move all debt to the mortgage, only time will tell on that.

thanks for any help on this matter.

kingstreet

It won't make a difference. If it has less than 6 months left to run most lenders will ignore it anyway.

If it had longer and you plan to consolidate it into the mortgage, you simply note it is to be repaid on or before completion and it wouldn't be taken into account anyway.

Are you sure you want to consolidate something with such a short remaining term over the term of a mortgage?

skintbloke123

we are planning to overpay on the mortgage every month, but we really just want to just get everything in one place, so we can get ourselves back on track, do you forsee any issues with figures supplied?

kingstreet

An 83% remortgage?

No. Not really.

I'd only reiterate my caveat that rescheduling short-term debt over a longer period will result in more interest being paid, possibly unnecessarily.

As long as you're aware of that, there's no problem.

DVardysShadow

skintbloke123 wrote: »

we are planning to overpay on the mortgage every month, but we really just want to just get everything in one place, so we can get ourselves back on track, do you forsee any issues with figures supplied?

It is the old consolidation delusion. You postpone your debt by putting it on the mortgage, thus freeing up monthly income to take on more credit. And end up deeper in the mre.

I would say that the best way to deal with the debt is to move your highest interest rate debt to 0% cards - if necessary by spending [normal expenditure only!] on the 0% cards and paying that expenditure off your highest APR credit. Meanwhile, keep paying off the loan - it will be gone soon and then you will have £313/month to throw at the card debt, which could be gone in about 3 years.

Your situation is best dealt with on the DebtFreeWannabes part of the forums - where the snowball calculator and the statement of affairs will be recommended

skintbloke123

the thing is my wife is going on maternity in a few months so that is the real reason for wanting to get everthing consolidated into one place, otherwise we would have just stayed as we are, and just remortgaged for the current amount outstanding on the mortgage.