Re-Mortgage & Credit Card Debt

CAZANDSTEPHEN

My current Mortgage deal is coming to an end and have been offered 2.69% fixed until October 2015 to stay with current provider. No product fee and no credit check,no personal documentation required. Just ring up and continue. Cost per month works out about £30 more expensive that current rate. We have been overpaying by £55 per month and would look to continue overpaying and perhaps increase to reduce years left on mortgage. Currently 23 years. Obviously higher mortgage payment eats into the overpayment. If I do nothing, I go to SVR and will have monthly payment of £848 so will have to stop overpayment.

We got married this year and as well as using some savings,we both put costs onto 0% credit cards which we are both paying off well above minimum each month. I owe £9500 and wife £4000.

I have checked my credit rating and is Excellent with 33% of available credit being used. My wifes is good with probably about 40% of available credit being used.

I have a saving policy maturing in October which will generate £6000 which I intend to pay off my debt and will then concentrate on getting rid of the £3500 left plus help paying off wifes.

Question is whether best advice is go with the offer due to ease and no credit checks and look for new deal in to back to high SVR for couple of months and then go for new deal with reduced credit card debt or go for lower rated deal now. I would obviously not want to get rejected based on our debt when I know its going to get reduced in couple of months.

Any thoughts and advice would be appreciated as at times I cant see the wood for the trees!

_Andy_

"Question is whether best advice is go with the offer due to ease and no credit checks and look for new deal in to back to high SVR for couple of months and then go for new deal with reduced credit card debt or go for lower rated deal now.

eh?

Do you mean deals with your current lender? If so, there won't be any credit checks/underwriting so won't make any difference.

CAZANDSTEPHEN

Going with current lender seems easier and straight forward as I can just ring them up and accept offer but I can currently get a lower rate of interest elsewhere. Wondering how much my current debt will affect my ability to get the lower deals. LTV on property is 53% so no problem there. Debt is being managed and credit history is excellent but debt is still there even though I have ability to reduce in next couple of months.

Thrugelmir

Best to tackle your debt issues first before seeking a potential remortgage with a new lender. Settling your debt will give you the ammunition to tackle your wife's.

Some credit card companies have been trialling the reporting of 0% balance cards to the Credit Reference Agencies. With the plan that all Credit Card issuers will follow. This means that mortgage lenders as well can see people that juggle their debts. The concern being that such individuals have no ability to withstand financial distress. So pose a higher risk.