Re mortgage

zoeandsparky

my husband and I are on a repayment mortgage with an outstanding balance of £167.000, monthly payments are £1122. this mortgage is due for renewal in March 2016.
I need to purchase a new car and have saved £6000, will be making this up to £1000 with the use of loan or current credit cards and then seeking a 0% card to make the repayments of the £4000.

we really hoping to get a better repayment deal for our mortgage offer next year so my question is. if Im showing as havering £4000 worth of debt to pay off on a 0% card will it effect our ability to get a good mortgage offer or will the regular payments of this debt work in our favour?

second question would it look better to a mortgage company is we had the £6000 in our account at the time of considering a new mortgage .?

kingstreet

£400 card debt will see £200 a month taken into account in affordability.

As long as the amount you want is affordable, there should be little problem.

What is in your account won't be an issue.

ExpertAdvice

Hi,

Im sure Kingstreet meant £4,000 on credit debt would be considered at 5% which is £200 per month in your affordability.

It would help you build your credit history provided you pay the instalments on time. As long as you meet the affordability, it wouldn't matter and as Kingstreet mentioned it doesn't matter how much balance you have in your bank account when remortgaging.

kingstreet

I did indeed, thanks.

Thrugelmir

Consider buying a cheaper car and paying off more from the mortgage. Interest rates will rise at some point in time. Don't assume that today's rates are here for ever.

getmore4less

A £6k car will work just as well as £10k one.