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tied in until 2014 my mortgage with halifax

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Hello everyone

Bit of a dilemma, tied in until 2014 with halifax £97,000 outstanding 5.78%.

besides the mortgage have £7k in credit cards on ( fortunately 0% till May 2012 and October 2012 )

I tried to re mortagage 4 months ago and was declined, allthough the payments would have been around £90 per month cheaper

I have a 2% exit fee as well.

hoping to clear cards within 2 years

Do I stay as I am try and clear CCards as quickly as possible and see out the rate ?

or reply next year ?

any feedback woudl be great even, im looking at 90% ltv at the moment
:j
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Comments

  • curlyboy
    curlyboy Posts: 255 Forumite
    secondly - because my re mortgage application was declined will it effect my credit rating ?? if it does how long is best to leave it and repair my file and re apply when my cards are paid off may be - or see out my fixed rate for another 30 months
    thanks
  • Yes unfortunately it would have an impact on your credit rating :( not sure how long that would stay on file?
    It's just the same as when you apply for any form of credit and you're declined - it always shows up.
  • curlyboy
    curlyboy Posts: 255 Forumite
    i need advice on my original post - but thanks for the reply

    Bit of a dilemma, tied in until 2014 with halifax £97,000 outstanding 5.78%.

    besides the mortgage have £7k in credit cards on ( fortunately 0% till May 2012 and October 2012 )

    I tried to re mortagage 4 months ago and was declined, allthough the payments would have been around £90 per month cheaper

    I have a 2% exit fee as well.

    hoping to clear cards within 2 years

    Do I stay as I am try and clear CCards as quickly as possible and see out the rate ?

    or reply next year ?

    any feedback woudl be great even, im looking at 90% ltv at the moment
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
    1,000 Posts Combo Breaker
    Clearly somebody is not keen to give you a remortgage - they are obviously concerned at the risk you present. And if you do, where are you going to get the early repayment charge and fees from? It is obviously not in the bank because you have £7K on your credit cards.

    Get the credit card debt down as fast as you can because come next year you are going to find the interest on them is considerably more than 5.78%. Then when you are able to remortgage without an ERC you will also be in a better financial position and more likely to persuade a lender that you are a good risk.
  • curlyboy
    curlyboy Posts: 255 Forumite
    forgot to advise i work for a very large retail organisation myself and other half have around £4k in shares due out in febuary and £3k the following year

    Would it be best to invest half of that paying off the CCards.

    When the 0% runs out next May and October I will shift the debt to another 0% Ccards.

    I possibly feel that the Credit Cards and overdraft are the reason why I was declined.

    thanks
  • curlyboy
    curlyboy Posts: 255 Forumite
    by the way the 5.78% is on my mortgage not ccards

    thanks
  • jimjames
    jimjames Posts: 18,657 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    curlyboy wrote: »
    forgot to advise i work for a very large retail organisation myself and other half have around £4k in shares due out in febuary and £3k the following year

    Would it be best to invest half of that paying off the CCards.

    When the 0% runs out next May and October I will shift the debt to another 0% Ccards.

    I possibly feel that the Credit Cards and overdraft are the reason why I was declined.

    thanks

    If you are constantly moving the CC debt around between 0% cards and never paying it off then that may be your problem.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • curlyboy
    curlyboy Posts: 255 Forumite
    but i am paying off the debt slowly because its on on 0% im hoping to have a fair chunk of it paid by this time next year
  • deedee71
    deedee71 Posts: 918 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Hi curlyboy. Watch you don't fall into the stoozing trap as I did. Kept going after the 0% credit cards until I discovered I couldn't get another one as there were so many showing up on my credit search and I had exhausted all the "families" of credit cards.

    I've stopped now and hopefully by the time I need to remortgage my credit rating will look a bit better.

    I think the point magpiecottage was trying to make is it makes more sense to clear the cards as if you don't get another 0% deal the interest will be higher than 5.78%.
  • curlyboy
    curlyboy Posts: 255 Forumite
    dear dee

    i was actually thinking that once the cards run out next May and October I am struggling to find new providers , but I read you can re apply to certain Credit card providers as long as its over 12 months ??? is that correct, I never been declined by a CC. also My missus can apply as well and her credit rating is superb

    what do you think

    cheers
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