Tidying up finances, will it affect my mortgage application

mparter

I'm reviewing my finances and have done the following;

- got a Virgin Money (VM) 0% BT card with a limit of £4,800 for balance transfers
- balance transferred £2,060 from a card to the VM card
- balance transferred £2,188 from another card to the VM card
- will close both the above cards once the balance transfers have completed
- got a Sainsbury's 0% purchase card with a limit of £9,000

I currently have a balance of £5,118 remaining on my car HP. It's at an interest rate of 9.7% AER and has 21 months left to run.

Basic maths suggests I should get a settlement figure from the finance company and then pay the balance with the Sainsbury's card.

However, I'll be looking to move house in the next few months and obviously applying for a mortgage. Will having used a significant chunk of my Sainsbury's card balance impact any potential mortgage application? Despite it being used to close another financial account.

Thrugelmir

For mortgage purposes is more little than a shuffle of the deck. Though there's never any harm in closing unused accounts. Switching the car finance to a credit card reduces your outgoings. However more than likely will extend the repayment term.

Personally I'd be focusing on reducing the level of debt. Tomorrow may always bring unexpected bad news which impacts ones finances further.

mparter

Just reading some other posts, I'm assuming the loan provider will accept a credit card and if they do, do they treat is a payment or cash advance. Guess I'll have to ask them tomorrow when I call for a settlement figure.

mparter

Ah well, good idea in theory however the finance company don't accept credit cards for payment so bang goes that idea.