Buying house new CC advice please

michaeloswald128

Hi,

My partner is buying a new house and we have had the mortgage agreed with a move in date of 22nd October. We have really stretched ourselves to put down a 10% deposit and paid a little more than the asking price to ensure we got it (Scotland). By the time we pay all of the lawyers fees and stamp duty etc we are just affording the move (although we can easily afford the mortgage when we actually get it).

The house needs some work done between decorating, carpets blinds etc and hopefully soon after a new kitchen. In order to get these things down in a timely manner we'd like to pay for some of it on credit and ideally get it interest free.

The mortgage adviser has said not to apply for anything before we move in and that seems sensible. I've called tesco and halifax (our current 2 CC providers) to see if they will offer any deals on interest free (either balance t/fer or purchases) and they have both refused. The limit on each card is around £5500.

So my actual question! I'd like to ensure that when we move we are able to get a new card with a good offer and a reasonably large limit. Should I reduce the limit on the 2 we have to ensure that happens or will it make no difference? I'm thinking the barclaycard interest free balance transfer offer is the way we will go but of course it depends if that offer is still around at the time.

All thoughts appreciated.

InsideInsurance

There are too many variables and each lender has their own preference

If your total available credit is 11k over 2 cards and you've a salary of 300k then the answer is going to be different to if you have these two cards plus a loan plus a catalogue company line of credit plus a store card and have a 12k salary.

If you do decide to reduce the limits then firstly remember it may take up to 3 months to reflect on the CRAs and secondly it may be sensible to just reduce one card rather than both as many lenders like to see that others are trusting you with large limits

[Deleted User]

michaeloswald128 wrote: »

Hi,

My partner is buying a new house and we have had the mortgage agreed with a move in date of 22nd October. We have really stretched ourselves to put down a 10% deposit and paid a little more than the asking price to ensure we got it (Scotland). By the time we pay all of the lawyers fees and stamp duty etc we are just affording the move (although we can easily afford the mortgage when we actually get it).

The house needs some work done between decorating, carpets blinds etc and hopefully soon after a new kitchen. In order to get these things down in a timely manner we'd like to pay for some of it on credit and ideally get it interest free.

The mortgage adviser has said not to apply for anything before we move in and that seems sensible. I've called tesco and halifax (our current 2 CC providers) to see if they will offer any deals on interest free (either balance t/fer or purchases) and they have both refused. The limit on each card is around £5500.

So my actual question! I'd like to ensure that when we move we are able to get a new card with a good offer and a reasonably large limit. Should I reduce the limit on the 2 we have to ensure that happens or will it make no difference? I'm thinking the barclaycard interest free balance transfer offer is the way we will go but of course it depends if that offer is still around at the time.

All thoughts appreciated.

Interest free deals are not usually given on request; they are introductory offers or sent (unsolicited) to existing customers who the card provider wishes to encourage use of the card.

Afterall, they are a loss leader. The credit card company has to borrow the money and if they don't charge you, then they are not making money. The charge they make to retailers will not cover the expense of an interest free deal.

Having said that, I'm frequently sent offers by Tesco for an interest free period for purchases, but that's probably because they want to encourage me to use the card more ... and then hopefully not pay it off in full by the end of the interest free period and so incur hefty interest fees.
If you've not been sent such offers, then they probably don't think it's a worthwhile investment offering it to you ... or they are concerned at your ability to repay if you do go and splash the plastic.

Buying a new house is an expensive time for anyone, but there is no need to carpet the property immediately if you can't afford it. Or seek out cheap 'end of roll' deals until you can afford something better. Curtains are often being given away on the likes of freecycle - they'll do until you can afford something better.
A new kitchen will be expensive, so I suggest you hold off and make do until you have saved up enough to afford one in maybe 5 years time.

You have explained how strapped for cash you will be at completion, and you ideally need a provision in reserve in case of any emergency repairs you discover really need doing immediately. As you haven't got that, then keep the credit cards as clear as possible in the event you suddenly need urgent funds.

michaeloswald128

I realise we are not a great cash generator for the 2 cc companies we have as we only use 1 of them and pay it off in full monthly.

Thinking we will get the keys and try to get some of the basic decorating done (so that we're not working round furniture, moving it all to have carpets put down etc. Probably only the living room and our bedroom then see what options we have re: interest free credit.

I do take your point that we won't have an abundance of backup money should something need done but we have spent a bit of time investigating the house and everything seems to be in great repair and working order. It is all in a state we could live in it until it gets done but we'd like to put our stamp on it and not wait years to do anything....

Thanks for the advice so far

YoungTrafford

I'm new here, but if you have 2 cards that are clear and you're good with them and always pay them off in full... It begs the question how handy are you? A bit of decorating supply on the cards you already have, maybe split between the two if you have different statement dates, and you could be laughing without a new card... Hiring pros of course costs many times more.

I'm not that handy, but I'd be willing to give the place a lick of paint, and get that cheap carpet mentioned above and wait until the right 0% card was in my possession. I'd certainly look to spend as little as possible until removal and legal fees have gone.