Condition of Mortgage - Credit Card

robfranklin

Hi all,

I have a credit card debt of approximately £6000 and a condition of my mortgage is clearing this off.

My dad has kindly offered to let me balance transfer this onto his credit card, at which point I would pay him back monthly. Does this count as a cleared debt at this point, at least to the lenders.

Hypothetically, could my dad then balance transfer this back to me at some point in the future? The broker indicated this made a lot of sense but was unsure of the logistics.

Thanks!

Live84

Technically you haven’t cleared the debt, just transferred the debt so you still owe but depends if the bank ask for proof you have paid it off.

robfranklin

See this is what I thought, however with the debt not being in my name. At this point technically speaking it is no longer mine?

davidmcn

robfranklin wrote: »

See this is what I thought, however with the debt not being in my name. At this point technically speaking it is no longer mine?

All you're doing is shifting it from one creditor to another (i.e. your dad). I don't think this works.

Penelopa.Pitstop

His credit record is clean so card is paid off.

csgohan4

Consider how you accrued that debt as owning a house your overheads are going to be more, no more getting the LL to fix stuff as you will be.


The debt free wannabee forum is quite useful

kingstreet

The requirement usually finishes with "without recourse to further borrowing" and you can't really claim to be meeting that, can you?

This is a requirement for affordability reasons and replacing the card repayments with repayments to your father doesn't appear to resolve the issue.

ACG

Why did you say you would clear the debt if you have no intentions of doing so? All you are doing is causing yourself stress and risking losing money on fees if it all comes undone at the last minute.

It might have been a better idea to go to a lender where it does pass affordability or worked out how much needed to be cleared prior to completion as you may have only needed to clear a grand rather than £6k.

You can debate technicalities all day long with us, but if the lender or solicitor have issues it wont be a debate, they will pull the offer.