Money transfer to 0% CC

rex28

Can anyone offer a bit of advice please. I've been having a play around with some online mortgage calculators to get an idea of how much we could afford to borrow.
I have a student loan outstanding of around £7000, and they take currently about £550 per month from my salary to pay it back, so it looks like about 12 months left to pay it.
I've just had an offer from my credit card company for 0% money transfers until 2018, with a 3% fee.
If I was to take a £7000 money transfer and pay off the student loan, I have compared the figures in an affordability calculator and it gives almost £50k extra that we could borrow. (Reducing monthly commitments but increasing the credit card balance). This is the halifax website.
Doing this would also make the student loan repayments a bit more flexible.
Can anyone see any big problems in doing this? Of course the debt showing on my credit report would shoot up in a short space of time. The cc would not be a new account.

rex28

Just thought I'd update on this, in case anyone else is looking to reduce their student loan payments. I called the slc to get a balance and they said that i am now eligible to pay by direct debit. They calculate the payments based on last financial year's total earnings. Because I've had a promotion and a salary increase in the last couple of months, I can now reduce my student loan repayments by £230 by going onto direct debit.
So if you had an increase in salary lately, and if you're within 2 years of paying off your student loan, then it's possible to reduce the payments by going on to direct debit. I know it might not apply to a lot of people, but someone might find it useful.

Senior_Paper_Monitor

A very useful post rex28 thank you - I certainly didn't realise that and have just added a note to our database (and will be researching the rules in more detail on Monday).

As the saying goes - every days a schoolday (even @ 62 )

rex28

I need to call the slc back in a few days to set up the direct debit, once the 2015/16 income figures are fully processed on their system.
The agent could see the 15/16 income passed from hmrc already, and so he could give me a rough figure for a monthly direct debit. When I call next week and get it finalised, I'll report back here to confirm.
From what I've read, it looks like slc receive the figures from hmrc once a year, and the direct debits are adjusted each time. So the repayment figure would eventually correct itself. But I think if the timing is right then you could get a full 12 months of reduced repayments compared to PAYE.

TheLuckiest

Mortgage_Moog wrote: »

You won't get a mortgage with £7000 worth of debt. Don't listen to the online calculators which make it seem a small issue, debt is a massive thing that destroys your chances of buying.

The way I had it told to me, by 3 different lenders, was that the amount of debt you have is multiplied by 5 and that amount is taken off what they'll lend you. That would mean £35,000 off the amount they'd lend you in your case.

If you tell anyone you have £7000 of debt they'll reject you immediately. Sorry but that's how it is, I spent years and years paying debt off before I could apply for a mortgage. Even when I only had £1000 they said no chance, you have to owe £0.

Simply not true. It's absolutely possible to get a mortgage with that level of debt.

Mortgage_Moog

Good luck with that...

TheLuckiest

Mortgage_Moog wrote: »

Good luck with that...

I'm not sure why you think it's impossible to get a mortgage unless you have zero debt, but unfortunately you're obviously misinformed.

loubylou1982_2

It seems this is slightly off topic for this thread but I felt I needed to comment anyway :cool:

We have just (this week) been approved for a mortgage that is double our current one and we have approx £12k of unsecured debt.