Pay off mortgage or credit card?

muzer

chockydavid1983 wrote: »

3 x Bank Of Scotland = £15k @ 3%
Another Tesco = £3k @ 3%

I didnt realise I could open more than one Tesco account. Am I limited to two? Thanks

jamesd

Credit card debt hurts initial mortgage affordability but can improve affordability and save you money if it helps you to get into a lower LTV with lower interest rate. It's not inherently bad. Unless you have a low income your mortgage seems too small for it to matter. I had around 60% of my mortgage borrowing for card stoozing when I got my mortgage from one of the fussiest lenders around, easy affordability and low income multiple at 75% LTV.

You might consider some use of P2P, perhaps vai Ablrate and MoneyThing. Raw interest rates in the 12-14% range, perhaps 10% after allowing for bad debt. Easier to get invested at Ablrate via their secondary market, faster currently to withdraw from MoneyThing where I'd expect 5k to be offered, sold and in your bank account in an hour or so. Subject to change, of course.

Kim_13

muzer wrote: »

I didnt realise I could open more than one Tesco account. Am I limited to two? Thanks

Yes, it's two Tesco accounts. The exception to this is if you have an old Clubcard Plus account, then you are only allowed one.

With Tesco, you can only have your name on two current accounts, so if you have a joint one in addition to your sole one, you won't be able to get another (unless you switched the joint away to another bank or building society first.)