Remortgage advice please

united4ever

Bought or house 18 months ago and on a 2 year fix at 2.99%

House value - bought at 250k but maybe worth 260k now

current mortgage was for 150k but down to about 144k at present.

However, cc debt about 9k...(this was mainly due to the purchase of a second hand car) the cc is interest free until May so looking to switch to another interest free card soon (if there is a recommended card then please let me know).

I am married with 2 small kids and a wife.

Wife works a few hours a week and earns about 3-4 k a year.

I earn about 33k a year from main job plus do a saturday job which pays about 6k a year (only started in December doing this with the intention of paying off cc debt...but could do it longer term i think to help with household income).

Now then, I think the remortgage would be quite straight forward but will the 9k debt affect the interest rate i get? If so, is there anyhting i can do to improve my situation barring anything it all off straight away. No other debt.

Was thinking of contacting london & country next month and maybe if the best deal seems to be a 6 month long offer i could apply sooner rather than later......if not just wait until september when the fix ends.

Any advice, and is this 9k debt goin to be a massive fly in the ointment.

MortgageMamma

Based on what you say, it looks affordable as it is.

I know you've only been in your Saturday job since December - is that a permanent contract? it looks better for a lender if it is and if you've been there more than 6 months.

What is the situation with your wife is her job full time perm? how long has she been doing it?

I think it would be a good idea to pay the 9k down a bit if you can, are you struggling with the repayments?

united4ever

my part time job is a zero hour contract...my wife has no contract at all but has been doing it for 8 years (language teaching at a local school). Repayments of cc are on interest free card but yes, finding it hard to get it down hence the part time job. Hopefully a remortgage will bring our monthly mortgage down to close to 100 pounds a month cheaper though it would e nice to keep repayments at current level and overpay the difference but maybe should get the cc paid off before overpaying on mortgage.

MortgageMamma

united4ever wrote: »

my part time job is a zero hour contract...my wife has no contract at all but has been doing it for 8 years (language teaching at a local school). Repayments of cc are on interest free card but yes, finding it hard to get it down hence the part time job. Hopefully a remortgage will bring our monthly mortgage down to close to 100 pounds a month cheaper though it would e nice to keep repayments at current level and overpay the difference but maybe should get the cc paid off before overpaying on mortgage.

Regarding your wifes work - if a lender contacted her employer would they said it was a permanent position? just a bit concerned that 8 years is good, no contract not good. Is she paid on PAYE or self assessment? Zero hours contracts can be a bit of a nuisance from a mortgage perspective.

It could be an idea that if you do remortgage and clear the CC debt, you could continue the part time position to make overpayments on your mortgage to clear the debt quicker?