Will applying for 0% card affect mortgage application

Pelepeg

Hi all. Am hoping you can help. I am in the process of re-mortgaging and in providing the details to my fa I find that I actually have about £10k over 3 credit cards that needs paying off. I'm quite shocked as I didn't realise the total was that high. So, I need to apply for some 0% cards and do some transferring as I pay interest on all three right now. If I apply for a couple of cards now, will this affect my credit score and so affect my mortgage applications? Or would it be better to wait for the re-mortgages to go through and then tackle the cards?

Thanks

eskbanker

How confident are you that you'd be able to get multiple 0% cards, in terms of the scale of your debt versus your overall financial circumstances (mortgage, salary, outgoings, etc), especially bearing in mind that for the period you'd have both old and new card accounts open this would at least double your aggregate available credit? Having £10K of unsecured debt may impact on your ability to remortgage anyway, or at least to get the best deals, what does your FA say (with sight of all your finances)? How/when would you pay back the £10K?

Pelepeg

I suspect he will suggest adding the 10k to the mortgage. I want to try and avoid this if possible, maybe just adding the £4.5k on highest interest cards and paying off the lower interest one.
I've no idea about the card yet. Have joined the money club and it gives me a few options with 90% pre approval rating. I didn't want to apply until I know whether it would affect the mortgage application or not.

Mortgage will be joint with husband, and cc's, although debt is theoretically joint, are in my name so affect only my side I guess.

System

Why not hold off moving the debt around until you've finished the mortgage application, a few months interest instead of risking potential issue with too many credit searches?

flower77g

Some lenders (Yorkshire building society come to mind) will disproportionately reduce the amount they will advance on a mortagage if they see new credit cards, so my vote would be to consolidate the credit card debt into the mortgage but find a mortgage that allows you to pay 10% back each year without paying an early redemption charge.

Pelepeg

AlexandLauren wrote: »

Why not hold off moving the debt around until you've finished the mortgage application, a few months interest instead of risking potential issue with too many credit searches?

That's what I posted to find out. Will it affect my mortgage application or should I wait?!

shortcrust

Recent credit searches, new accounts and an increase in overall available credit might all be viewed as negatives. I guess it's even possible if you time it really badly that your balances might show on both the old and new cards. However, no one but the lender can tell you whether it will affect their decision. It might. It might not. So my advice is to not take the risk.