Family member transferring balance \ re-Mortgage application

letmefree

Hi

I have around £20k of debts on cards and £80k interest only mortgage which runs out in September (house is worth around £150k). The new mortgage will be repayment.

A family member is happy to take out a 0% credit card and transfer some of my money from my credit cards to that.

I plan on paying them monthly in cash for the next 6 months until the new mortgage is arranged and then setting up a DD.

The question - I was planning not to declare this when I remortgage as in fact the family member will probably write off the money I owe them anyway. Is this a problem? Would the mortgage company question this? I assume they wouldn't really find out and would only see the balance in my current cards.

Thanks.

burlington6

Do your family member a favour and don't ask them to do the transfer.

It won't end well.

letmefree

burlington6 wrote: »

Do your family member a favour and don't ask them to do the transfer.
It won't end well.

Thanks for the advice but it will all be fine.

burlington6

letmefree wrote: »

Thanks for the advice but it will all be fine.

For you, you're not the one lending the money

letmefree

burlington6 wrote: »

For you, you're not the one lending the money

Again thanks for the input. I am happy with the situation, I was just wondering how far back and how much details banks go to when you apply for a mortgage. Any constructive comments along those lines would be appreciated. :A

MoneyMission2015

letmefree wrote: »

Hi

I have around £20k of debts on cards and £80k interest only mortgage which runs out in September (house is worth around £150k). The new mortgage will be repayment.

A family member is happy to take out a 0% credit card and transfer some of my money from my credit cards to that.

I plan on paying them monthly in cash for the next 6 months until the new mortgage is arranged and then setting up a DD.

The question - I was planning not to declare this when I remortgage as in fact the family member will probably write off the money I owe them anyway. Is this a problem? Would the mortgage company question this? I assume they wouldn't really find out and would only see the balance in my current cards.

Thanks.

I don't know an awful lot about this but I would think the bank will ask what the cash withdrawal is every month for 6 months as they will probably assume it is a regular outgoing.

MoneyMission2015

Personally I don't think it's a good idea for your family member to do this. However, I know you haven't asked for opinions so I have just listed a few things I thought of as I was reading this.


When the mortgage providers look at your credit reports they will be able to see that your credit card balances went from £20k to £0 in a short space of time and might want to know how you paid it off, as when they check your bank statements there will be no trace of large payments clearing the balance.


What your family member is doing is basically loaning you the money, which will have to be declared to your mortgage company otherwise it could be classed as mortgage fraud.


And one other thought, your family members credit card provider might not let the transfer go through. Most (although not all) balance transfer card providers will only balance transfer between cards that are in the same name.

letmefree

MoneyMission2015 wrote: »

I don't know an awful lot about this but I would think the bank will ask what the cash withdrawal is every month for 6 months as they will probably assume it is a regular outgoing.

Thanks I will need to re-mortgage in about 4 months. Transferring £4000 and I wouldn't be paying more than around £100 a month for the first 4 months so don't expect that will ring any alarm bells.

At the end of the day I fully expect to be able to get the mortgage even if I didn't do this. It just makes it easier.

letmefree

MoneyMission2015 wrote: »

Personally I don't think it's a good idea for your family member to do this. However, I know you haven't asked for opinions so I have just listed a few things I thought of as I was reading this.


When the mortgage providers look at your credit reports they will be able to see that your credit card balances went from £20k to £0 in a short space of time and might want to know how you paid it off, as when they check your bank statements there will be no trace of large payments clearing the balance.


What your family member is doing is basically loaning you the money, which will have to be declared to your mortgage company otherwise it could be classed as mortgage fraud.


And one other thought, your family members credit card provider might not let the transfer go through. Most (although not all) balance transfer card providers will only balance transfer between cards that are in the same name.

Thanks.
The money being transferred is now around £4k. So it would go from £20k to £16k. Still a lot but I am hoping not a problem. As I mentioned I am able to get a mortgage anyway - just this way with reduced debt should be easier.

In 4 months I should have reduced my debts further again to around £11,000. I am also assuming maybe the banks go back 3 months not more in looking at debt totals etc. so it will not show up - I could be wrong.

letmefree

If nothing else £4k at 0% interest for will save me a few £100 over the next 12 months, when I will have paid it off.

letmefree

MoneyMission2015 wrote:

And one other thought, your family members credit card provider might not let the transfer go through. Most (although not all) balance transfer card providers will only balance transfer between cards that are in the same name.

Same surname and first initial is the same - so not a problem
We have done this before, quite a few months ago, and no problems. I paid that back as I intend to pay this back.